Etymology

Averch-Johnson effect

Today it means: The tendency of regulated companies to engage in excessive amounts of capital accumulation in order to expand the volume of their profits. Full definition →

Ask AI about its historyChatGPTClaudePerplexityGoogle AIGrok

The story

Named after Harvey Averch and Leland L. Johnson who proposed the idea.

Etymology from Wiktionary, CC BY-SA 4.0.