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What about companies choosing to use inferior products because their board own a stake in the producer? What if the majority of shareholders are hurt by this ch
by quxbar 8y ago
What about companies choosing to use inferior products because their board own a stake in the producer? What if the majority of shareholders are hurt by this choice, but they're unaware that it's being made? It's extremely common in my field and causes noticeable market inefficiency.
- jondubois 8y agoExactly, it's the same force at play and it's arguably capitalism's biggest problem. Nepotism (if it can be called that) tends to be inversely proportional to efficiency. In most technical fields, the person you know is almost certainly not the best person for the job.