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When I bought my house in a major US metro, any attempt to low-ball the seller simply meant your offer would go immediately in the trash in favor of one of the
by raisin_churn 4y ago
When I bought my house in a major US metro, any attempt to low-ball the seller simply meant your offer would go immediately in the trash in favor of one of the dozens of asking-plus bids, and continued attempts to do it was a surefire way to extend the unpleasantness of house hunting. And house prices in my city are up 20% since 2020, so I don't think the situation has become more amenable to low-ballers.
And that's all beside the point, because the information asymmetries in real estate markets are totally different from labor markets. This law reduces the information asymmetry to actually make labor markets more like real estate markets, in which all historical prices are public information and (in civilized jurisdictions, at least) all known relevant factors that might affect price are legally required to be disclosed.
- WalterBright 4y agoWhat about the information asymmetry inherent about you knowing what your abilities are, and the company does not know? If you've ever hired someone, you'll find out about this asymmetry.
- raisin_churn 4y agoIndeed, I've hired many people. The nice thing is that as an employer in most of the US, you can just fire them for any reason or none at all. I don't think the possibility of doing multiple interviews only to discover that the candidate you've had ample opportunity to question is actually a complete incompetent justifies underpaying/attempting to underpay the rest of your, presumably competent, employees. I promise you, if you stop structuring compensation with the assumption that your employees are worthless, you'll stop getting so many incompetent or recalcitrant employees.