Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
You don't understand a thing aobut productivity, do you? For workers, who are a cost, you increase productivity by reducing wages. For management, who are an asset, high wages reflect market prices for 'talent' and thus high productivity, and you cannot cut them or you'd be at a disadvantage.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Jun 6th, 2007 at 11:55:14 AM EST
[ Parent ]
Wikipedia: "winner takes all" as an example of overconfidence
Many "real-world" situations can be characterized as a rank order tournament. In other words, prizes are not proportional to outcomes, but accrue to the top performers. In many employment situations, only the best performers are promoted - for example tenure in academia, or promotion to partner in a consulting or law firms. In such situations, overconfidence bias may:
* [Cause employees to p]refer tournaments and other compensation schemes where most of the rewards are concentrated at the top, and where the costs of failure are extreme (for example an "up or out" promotion system). The overconfidence bias causes these employees to consider the chance that they will fail to be very slim and to overestimatethe chance that they will succeed.

Can the last politician to go out the revolving door please turn the lights off?
by Carrie (migeru at eurotrib dot com) on Wed Jun 6th, 2007 at 12:13:29 PM EST
[ Parent ]


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