Looking at the history of hit products as an example of such changes in demand, the main purchasers of the so-called 3Cs – color television sets, air conditioners, and cars – were young couples and were a relatively homogeneous group.
The absence of such mechanisms prevented an early detection of the problem and might have even created incentives for imprudent risk-taking. Finally, the case suggests that our system is not sufficiently alert to possible conflicts of interest. The combination of auditing and consulting in the Enron case is only one example.