Theories of Cooperation and Competition

The panel discusses two different aspects of institutional and intellectual change as the U.S. financial sector and the production and service sectors transitioned from a prosperous postwar situation to a highly competitive international era. In the financial sector, bankers, policymakers, and regulators had to work toward a common intellectual and ideological basis in order to deal with the questions created by economies of scale in finance. In other sectors of the business system, entrepreneurs had to solve problems of creating and sustaining effective teams (Kahneman's System 2 slow thought and action) in an effort to meet foreign competition.