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Somewhat related, predatory pricing violates antitrust laws in order to prevent monopolies from forming in markets. Can one consider "excessively generous compe
by chrononaut 6y ago
Somewhat related, predatory pricing violates antitrust laws in order to prevent monopolies from forming in markets. Can one consider "excessively generous compensation" to employees a form of market manipulation?
Much like predatory pricing prohibits other players in the market from operating competitively, generous compensation to potential employees would prohibit those organizations from operating competitively if they don't have the revenue stream to support those salaries, and thus making it more difficult to retain talent. In other words, FAANG exists by name for a reason. Those organizations provide higher compensation (or above "market") than the general set of other companies in their space.