Incentives
nicole and
Incentives
“nobody ever got fired for buying IBM.”
The rabbit runs faster than the fox, because the rabbit is running for his life while the fox is only running for his dinner
Richard Dawkins • The Selfish Gene
Overpowered Metrics Eat Underspecified Goals
ribbonfarm.com
Incentives Drive Behaviour:
- Lawyers always want another revision (paid $500/hr)
- Realtors always want to close a sub-par deal (2% fee means a $20,000 more for you isn't worth it for them)
- Wealth Managers will always push for the structure that pays them the most - usually more raw dollars (they get paid on AUM + additional trade fees, not resu
... See moreBuilding something no one else can measure
sriramk.com
Tackle the Monkey First:
"Let’s say you’re trying to teach a monkey how to recite Shakespeare while on a pedestal. How should you allocate your time and money between training the monkey and building the pedestal? The right answer, of course, is to spend zero time thinking about the pedestal. But I bet at least a coup... See more
One thing I didn’t realize until later in life is how the incentives of an industry shape your mood, your outlook, and even your character. In early stage investing, the incentives reward optimists, so it literally pays to keep an optimistic outlook. In journalism, the opposite is true. In law, the incentives often reward finding the flaw or the an... See more
Katherine Boylex.com