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Does the dollar amount of additional wealth given to the least-lazy person matter? Or is it only significant that they earn some marginal amount more than the s
by jlongr 7y ago
Does the dollar amount of additional wealth given to the least-lazy person matter? Or is it only significant that they earn some marginal amount more than the second least-lazy person?
- jonfw 7y agoThe larger the correlation between effort and reward, the more motivation. A more marginal reward would result in more marginal motivation. A significant reward would provide significant motivation.
- notahacker 7y agoIf the least lazy person earns some marginal amount more than the second least lazy person, the Gini coefficient isn't zero. And if the laziest [or unluckiest] person is reliant to some degree on receiving byproducts of the less lazy people's output, then they might be better off in absolute terms from that non-zero Gini coefficient incentivising the less lazy people to work harder. [the magnitude of the amount likely matters in real world situations too. The answer to whether you'd consider working as hard as people in your company who are less lazy than you probably depends on whether you're being offered an extra dollar or extra million dollars to do so]