Earlier quoted context omitted.
> but I think it's as least as likely that they are maximizing profits the way we'd expect a rational business operator to do I think you grossly overestimate the ability of most large businesses to behave rationally form an organizational profit maximization perspective. It would just as likely or even more likely be something like personal wealth maximization by an employee or group of employees, personal relations…
> It would just as likely or even more likely be something like personal wealth maximization by an employee or group of employees, personal relationship improvement, ego gratification, maintaining/improving social standing, effort minimization, etc. Do you have any evidence for this? > I think you grossly overestimate the ability of most large businesses to behave rationally form an organizational profit maximization…
With that said, I have no guarantee that these companies are leaving money on the table. We also have no guarantee that they aren't. The best you are going to be able to do is create a model. Models are not reality. Models use assumptions. You're making two huge assumptions. One, that the models assumptions are correct. Two, the people interpreting the model are doing it correctly. Humans are imperfect, we make imperfect models, those models are interpreted by other imperfect humans. Making concrete statements either way is silly in my opinion.