Acknowledgments

This chapter is reprinted with permission from Journal of Economic Perspectives 12, no. 4 (Fall 1998): 73–94. We thank Bradford De Long, Robert Gibbons, Oliver Hart, David Kreps, Timothy Taylor, and Michael Whinston for their helpful comments. We are also indebted to the members of the Corporation of the Future initiative at McKinsey & Company, especially Jonathan Day, with whom we have collaborated on the issues discussed here.