“We are far from understanding how to achieve adaptively efficient economies because allocative efficiency and adaptive efficiency may not always be consistent. Allocatively efficient rules would make today's firms and decisions secure - but frequently at the expense of the creative destruction process that Schumpeter had in mind.”

— Douglass C. North

Source: Institutions (1990), p. 81; Ch. 9 : Organizations, learning, and institutional change

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Douglass C. North 18

American Economist 1920–2015

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