Scale economies

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LV McEwan (Letters, 30 July) is absolutely right about the 
notion “economies of scale.”

Frequently economists, politicians and others ignore the other part of the notion, namely “diseconomies of scale”.

Perhaps it would be clearer if we used the term “benefits and costs of increasing scale”.

One particular tangible cost of increasing scale is the growth in centralisation and bureaucracy making ritualised procedures and problems of communication.

An important element of increasing scale is the idea of “intangible benefits or costs”, such as delays and the expense of mistakes.

Ellis Thorpe

Old Chapel Walk