Blois, K. J.
November 1974
Quarterly Journal of Economics;Nov74, Vol. 88 Issue 4, p681
Academic Journal
This paper discusses concepts set out in by Harvey Leibenstein's Theory of Inert. The theory is developed around the utility-effort index relation. The inert area is defined as a set of effort positions whose associated levels of utility are not equal but in which the action required to go from a lower to a higher utility level involves a utility cost that is not compensated for by the gain in utility. The question that arises when an inert area of the form is examined is why a person at effort would not move to any point outside the inert area and, in particular, to the point which gives maximum total utility. Leibenstein uses the concept of the combined inert area to explain such problems of achieving change within an organization in such cases.


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