What is O-ring theory in Economics?

Also known as the O-ring model of economic development, this refers to the theory that even the smallest components of a complex production process must be performed properly if the end product of the process is to have any useful value. In other words, a mistake that creeps into even the smallest of tasks can cause the final product to possess absolutely no value to users. The O-ring theory derives its name from a 1986 incident in which the Challenger space shuttle was completely destroyed as a result of the failure of a simple gasket, or O-ring, to work properly. It was first proposed by American development economist Michael Kremer in 1993.

Our code of editorial values

Related Topics
This article is closed for comments.
Please Email the Editor

Printable version | Jul 22, 2022 3:38:43 pm |