http://www.youtube.com/watch?v=cD0dmRJ0oWg
More here:
http://www.dummies.com/how-to/content/true-conspiracy-the-ford-pinto-memorandum.html
“Ford was fully aware of all these construction problems. However, people didn’t know that until Mother Jones magazine published a stolen copy of an infamous memo that was sent out to all senior management at the Ford Motor Company.”
“Ford continued to build and market the Pinto without modifications until news of the memo broke. It led to criminal charges, an avalanche of lawsuits, and a recall of all Pintos; the mess went on for years. Not to mention the fact that Ford got some of the worst press an American car company has ever received. Later studies indicated that the Pinto may not have been any more prone to blowing up on contact than any other car, but by that time, the damage was done.”
Where was Friedman’s model flawed and what’s the solution here? He obviosly didn’t take into account that Fiat’s little secret can turn to light. My solution? Have no secrets and open source everything! That may be a little bit too drastic and not fit the current economy but certainly interesting! If I recall correctly, Stephan Kinsella talks broadly about the topic.