l31.

The case for, and the existence of, “organisational slack” in companies was argued by Richard M. Cyert and James G. March (1963), A Behavioural Theory of the Firm. Organisational slack (the difference between maximum performance and acceptable performance) is not quite the same as Harvey Leibenstein’s X-inefficiency (the difference between maximum performance and actual performance) but it is not necessary to distinguish between them in this discussion. See Harvey Leibenstein (1976), Beyond Economic Man: A New Foundation for Microeconomics. The third essential label used in this field is “relational contracting”, which allows space in the contract for tolerance and for continuing the relationship, although either or both of the parties may be going through bad times, and may therefore be unable to deliver at a competitive price. The significance of these durable relationships is discussed by Ronald Dore, “Goodwill and the Spirit of Market Capitalism”, British Journal of Sociology, Hobhouse Memorial Lecture, 34, 1983, pp 459–482. For a technical survey, see Donald Andrew Hay and Derek J. Morris (1979), Industrial Economics.

David Fleming
Dr David Fleming (2 January 1940 – 29 November 2010) was a cultural historian and economist, based in London, England. He was among the first to reveal the possibility of peak oil's approach and invented the influential TEQs scheme, designed to address this and climate change. He was also a pioneer of post-growth economics, and a significant figure in the development of the UK Green Party, the Transition Towns movement and the New Economics Foundation, as well as a Chairman of the Soil Association. His wide-ranging independent analysis culminated in two critically acclaimed books, 'Lean Logic' and 'Surviving the Future', published posthumously in 2016. These in turn inspired the 2020 launches of both BAFTA-winning director Peter Armstrong's feature film about Fleming's perspective and legacy - 'The Sequel: What Will Follow Our Troubled Civilisation?' - and Sterling College's unique 'Surviving the Future: Conversations for Our Time' online courses. For more information on all of the above, including Lean Logic, click the little globe below!

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