Saturday, 30 June 2012

Incentive scheme delusion

From Everything Is Obvious:
"[O]nce we realise that some particular incentive scheme did not work, we conclude simply that it got the incentives wrong. Once they know the answer, in other words, policymakers can always persuade themselves that all they need to do is design the correct incentive scheme - overlooking, of course, that this was precisely what they thought they were doing previously as well." 
Exactly what is going on currently in corp gov currently.

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