5 ms·
This rather sounds like short term vs. long term decision making, or accumulating debt. What are the "coins" of Greshams's law in your example?
by doubletgl 6y ago
This rather sounds like short term vs. long term decision making, or accumulating debt. What are the "coins" of Greshams's law in your example?
- dredmorbius 6y agoShort-term consequences (positive or negative) are far mor cognizable than long-term, both to individuals and organisations. Cognizability is, then, the market for exchange and evaluation. Options with short-term benefit but long-term harm, are excessively adopted. Options with short-term harm or cost, but long-term benefit, are excessively rejected. Put another way, markets consistently under-rate risks, and more complex ones to a greater extent. But they also under-value long-term. positive benefits. Markets operate in the now. Related is Robert K. Merton's work in manifest vs. latent functions, from sociology.