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Michael Sabia Sees the Light
The Globe & Mail ran a long feature today on BCE Inc.'s strategic challenges. It's interesting but there is nothing terribly new other than CEO Michael Sabia's favourite economist is Joseph Schumpeter. One thing that did capture my attention is Sabia's belief that over the long-run VOIP will not be about price. Instead, he believes the winner of the war will be the "one that can deliver the service and features that customers want". Well, what do you know - Michael Sabia and I stand side by side when it comes to the real power of VOIP! Of course, a senior telecom executive has to believe a new service will generate strong revenue growth. The question, however, is whether it will cannibalize Bell's large legacy phone business?
Comments
Re: Michael Sabia Sees the Light
by
check binders
on Thu 31 May 2007 04:58 PM EDT | Permanent Link
Schumpeter's vast erudition is apparent in his posthumous History of Economic Analysis, although some of his judgments seem quite idiosyncratic and sometimes cavalier. For instance, Schumpeter thought that the greatest 18th century economist was Turgot, not Adam Smith, as many consider. Some of these judgments are partly explained by his opinion that there is one general system of economic analysis, and Léon Walras found it. Other economists are rated by how much of Walras' theory could be read into them. Schumpeter criticized John Maynard Keynes and David Ricardo for the "Ricardian vice." According to Schumpeter, Ricardo and Keynes reasoned in terms of abstract models, where they would freeze all but a few variables. Then they could argue that one caused the other in a simple monotonic fashion. This led to the belief that one could easily deduce policy conclusions directly from a highly abstract theoretical model.
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