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It helps the business owner and the consumer. Let’s not forget the consumer here. It also helps those willing to engage in gig activities. If Uber wasn’t margin

It helps the business owner and the consumer. Let’s not forget the consumer here. It also helps those willing to engage in gig activities. If Uber wasn’t marginally beneficial to drivers, why do they do it? Acting like Uber drivers are all idiots and need “protecting” is idiotic. If the economics don’t work, they quit.

deleted 8y ago
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gowld 8y ago
You can't just quit a car loan. Switching costs. "Marginal benefit" isn't a win overall if it's combined with excessive fixed costs over overhead. This is basic Econ 101/102 stuff. If you fall in a hole, you get marginal benefits from trying to climb out. That doesn't make the hole good for you.
gaius 8y ago
If Uber wasn’t marginally beneficial to drivers, why do they do it? If HFCS wasn’t healthy, why do people eat it?
- drdeca 8y ago
  Healthy and marginally beneficial aren't really synonymous. People value things other than just their health. Now, that isn't to say that it wouldn't be better if people consumed less HFCS. (But, isn't the ubiquity of HFCS partially due to corn subsidies? I think I heard that.) So, uh, when people purchase foods with HFCF I think it makes sense that this aligns with their marginal preferences. Does this mean it is to thei benefit? Hmm.
rectang 8y ago
It's a negotiation with severe information asymmetry. The business does hiring many times, so they reap the efficiencies of scale and get increasingly adept over time at hiding the risks they offload onto the contractors. To balance the information asymmetry, the contractors would need to pool their efforts similarly, and improve their ability to discover the true compensation. In other words, collective bargaining, with specialists who understand the full terms of the contract including all that's hidden in the fine print. <snark cantresist="true">All those government officials who pass laws crippling unions should stop treating business owners like idiots who need "protecting".</snark> Increasing unionizion has many side effects on the wider economy, and it's not my purpose to flog them. Instead, I'm merely trying to illustrate that each individual contractor is at a significant disadvantage when negotiating.

deleted 8y ago

[deleted]

gowld 8y ago

You can't just quit a car loan. Switching costs. "Marginal benefit" isn't a win overall if it's combined with excessive fixed costs over overhead. This is basic Econ 101/102 stuff. If you fall in a hole, you get marginal benefits from trying to climb out. That doesn't make the hole good for you.

gaius 8y ago

If Uber wasn’t marginally beneficial to drivers, why do they do it? If HFCS wasn’t healthy, why do people eat it?

drdeca 8y ago
Healthy and marginally beneficial aren't really synonymous. People value things other than just their health. Now, that isn't to say that it wouldn't be better if people consumed less HFCS. (But, isn't the ubiquity of HFCS partially due to corn subsidies? I think I heard that.) So, uh, when people purchase foods with HFCF I think it makes sense that this aligns with their marginal preferences. Does this mean it is to thei benefit? Hmm.

rectang 8y ago

It's a negotiation with severe information asymmetry. The business does hiring many times, so they reap the efficiencies of scale and get increasingly adept over time at hiding the risks they offload onto the contractors. To balance the information asymmetry, the contractors would need to pool their efforts similarly, and improve their ability to discover the true compensation. In other words, collective bargaining, with specialists who understand the full terms of the contract including all that's hidden in the fine print. <snark cantresist="true">All those government officials who pass laws crippling unions should stop treating business owners like idiots who need "protecting".</snark> Increasing unionizion has many side effects on the wider economy, and it's not my purpose to flog them. Instead, I'm merely trying to illustrate that each individual contractor is at a significant disadvantage when negotiating.