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In the aftermath of the financial crisis, the focus has been on better accounting for risk, better matching employee pay with the long term value they generate, and creating new regulations to “fix” the markets. Arguably, better matching pay with value created is ideal, but it is also difficult to measure, which is why we [...] Witness the birth of Google, the business giant: Veach and Kamangar argued that all the ad slots should be auctioned off. In search, Google had already used scale, power, and clever algorithms to change the way people accessed information. By turning over its sales process entirely to an auction-based system, the company could similarly upend [...] David Friedman describes what he calls the marginal cost of originality: Suppose you are the two hundred and ninetieth city planner in the history of the world. All the good ideas have been used, all the so-so ideas have been used, and you need something new to make your reputation. You [...] “If it ain’t broke, don’t fix it” You often hear about the perils of sunk costs, but can sunk benefits lead to bad choices too? I can imagine many situations were people would cling to something because it had been beneficial in the past. Maybe that’s why our government is so insistent on [...] |
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Copyright © 2012 Joel E Lewis - All Rights Reserved |
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