New Equilibrium Concept Boosts Success for Future Generations in Organizations
The article discusses a new equilibrium concept called organizational equilibrium for overlapping generations organizations. The researchers argue that existing equilibrium concepts do not meet the condition of future generations doing as well as the initial generation. They propose organizational equilibrium, which ensures this condition is met. The study shows that this equilibrium exists, is unique, and improves over autarky without reaching optimality. It can be found by solving a maximization program.