But what does this mean? I suggest three things.
The first is in economics. This subject still assumes, and so teaches, that businesses profit maximise. They don’t. Because they can’t. Because they don’t have the data to do so. And because the truth is they know that this is the surest way to destroy long term value. So they have other goals instead. Like growth. Or product innovation. Or stability. Or customer satisfaction. But never profit maximisation. So it is time economics stopped teaching soemthing that is false. Not just wrong. But false.
Sigh. Profit maximisation is the goal. The strategy. Quite what the tactic is to gain this is is arguable. But that’s still the goal.
Which is what economics currently teaches. Peeps try to maximise, now, how do they do this, let’s go have a look, shall we?