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> The goal is just to extract money from you and keep costs down While this mentality definitely exists, this doesn't account for brand and a wish to protect r
by Gustomaximus 8y ago
> The goal is just to extract money from you and keep costs down
While this mentality definitely exists, this doesn't account for brand and a wish to protect reputation. Hence why personally I tend to stick with established companies for things like trades as in the absence of a personal relationship, knowing someone has a brand to protect (and history against it) improves my chance of receiving a quality good/service
- smallnamespace 8y ago> this doesn't account for brand and a wish to protect reputation While the preservation of a brand might be rational for a corporation as a whole, it might be somewhat easy for executives that are paid quarterly and annual bonuses to temporarily goose profits by sacrificing long term reliability and brand (which only shows up with a long lag time, years down the road), then take their bonuses from investors before going somewhere else. This theory of 'looting' by executives might leave both customers and long-term investors worse off, but is caused by the inability of customers and investors to perfectly incentivize (or monitor) long-term decisionmaking.