Michael kremer formulated the o ring theory in 1993.
O ring model.
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Model 131107 8 80 8 80.
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The o ring that cost less than 1 which caused the challenger shuttle crash.
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His article the o ring theory of economic development published in the quarterly journal of economics presents a production function in which production consists of many tasks all of which must be successfully completed for the product to have full value mistakes can be extremely costly reducing the.
Modern production requires each of many activities to be done well for the output to have high value strong complementarity in technology.
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Each features a round cross section.
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Kremer s o ring model basic idea.
The o ring theory of economic development is a model of economic development put forward by michael kremer in 1993 which proposes that tasks of production must be executed proficiently together in order for any of them to be of high value.