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I disagree with your characterization (or I read it wrong). These are pay cuts, so customers prefer those where the cuts fall on CEOs first and greatest. Your a
by HWR_14 4y ago
I disagree with your characterization (or I read it wrong). These are pay cuts, so customers prefer those where the cuts fall on CEOs first and greatest. Your assumption that revenues remain constant seems to be one not shared by customers
So, yes, people prefer to patronize companies where the pain is shared regardless of the size of the pain.
- randomdata 4y agoI was referring to the referenced earlier study contained within. It wasn't focused on cuts, although it is assumed in this study that the same would hold true in a cutting situation. My assumption of equal revenue was meant to be across companies. Obviously a company with no money can't pay as well as a company that can print money. But if two companies have equal revenue, but one pays less for its workers, then the net will stay in the company with a disproportionate benefit realized by the shareholders. I was surprised that consumers favour the shareholders getting rich over the workers, but perhaps that is because the odds are they are shareholders themselves.