The Fifth Column—What Cost Minimization? or The Case of the Persistent Protocol

    Published Online:https://doi.org/10.1287/inte.11.3.9

    One of the recurring themes of my columns over the years has been long-term versus short-term optimization of management decisions. The perfect example of this sort of the thing takes palace in the oft-repeated “choosing the new computer” exercise. Choosing the computer that fits precisely the stated needs, within budget, is almost always optional in the short run and an unmitigated disaster in the long run. On the other hand, choosing the computer that is best for long-term expansion often causes front-end costs virtually guaranteed to provoke fanatical resistance from the corporate bean counters.

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