Emil Lederer · 1920
This recorded commission speaking turn challenges a proposed pricing plan by questioning its cost basis. Lederer’s objection concerns incentives: treating production costs as the foundation of prices makes price formation mechanical and weakens the motive to reduce those costs.
Man wird auf die Dauer, wenn man es als Grundlage ansieht, kein Interesse an der Senkung der Selbstkosten haben.
English translation: In the long run, if one takes it as the basis, there will be no incentive to reduce production costs.
He then doubts that a cumbersome apparatus of oversight could remedy the problem afterward. The brief intervention thus moves from pricing rules to producer incentives and finally to the limits of administrative correction; its force lies in linking institutional design to cost-reducing behavior.
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