Long-term and Short-term Targets: Conflict and Reconciliation
نویسندگان
چکیده
We address the issue of a tradeoff between longand short-term interests in economic management. Starting with an obvious observation that the actions targeted to longand short-term goals are generally in conflict, we pass on to a less obvious satement that it is not an exceptional situation that a smart decision maker can reduce or even eliminate the conflict. We illustrate the statement by an informal analysis of a stylized model of management of an enterprise. We show that if the managers put enough effort in identification of the current-value shadow prices of the enterprice, their current short-term-optimal actions become non-distiguishable from the long-term-optimal ones.
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