Averch-Johnson effect
English
editEtymology
editNamed after Harvey Averch and Leland L. Johnson who proposed the idea.
Noun
editAverch-Johnson effect (plural Averch-Johnson effects)
- (economics) The tendency of regulated companies to engage in excessive amounts of capital accumulation in order to expand the volume of their profits.
Further reading
edit- Averch-Johnson effect on Wikipedia.Wikipedia