6 ms·

I'm just going to shrug here. If it's cheaper why wouldn't they keep doing that?

• msandford 4y ago
  I've heard a phrase that I think paints a parallel picture. "The market can remain irrational longer than you can remain solvent" Sure businesses are supposed to be cruel uncaring bean counting machines. But they're corrupted by all these damn apes that make all the decisions. There's no law of economics that that's that humans have to act in a perfectly rational self interest. It's an assumption that many economic theories make, for various reasons but it's far from inviolable.
  • sublinear 4y ago
    What about the current economic climate makes you think anyone can afford to be irrational?
• skipkey 4y ago
  What many people don’t realize is that some large corporations actively manage for mediocrity. Oh, they won’t say that is what they are doing, but it is the outcome of things like micromanagement, constant meetings interrupting flow, high levels of process bureaucracy. But there is a rational reason for it. It reduces risk and makes output more predictable. If you have a 10x developer who is actually producing 10x, how do you plan for that? What if he leaves? If you reduce him to 2x or so, it’s much more likely he can be replaced.
  • abrichr 4y ago
    Interesting point. Do you know if there is a term for this in the management literature? i.e. is it ever discussed in the open, or is it more an unspoken/emergent behavior?