3 ms·
I wouldn't use that as evidence. A more complicated arrangement fraught with perverse incentives is less attractive than a simple credit card payment. Not to me
by 1123581321 4y ago
I wouldn't use that as evidence. A more complicated arrangement fraught with perverse incentives is less attractive than a simple credit card payment. Not to mention many of these groups are oriented around achieving something other than primarily financial gain.
- btilly 4y agoAny possible business arrangement has the potential for perverse incentives. If an advisor is willing to accept the potential for perverse incentives on the part of the advisee, that's strong evidence that the advisor is confident about their advice. If the advisor expects the advisee to accept the risk of perverse incentives on the part of the advisor, then caveat emptor. There may be good reasons to structure the relationship that way. For example I expect to pay a lawyer, and usually I don't expect to receive financial gain out of the relationship. But conversely it becomes very important for me to establish that this lawyer seems like a good one before I pay too much. But it all boils down to the same thing. I should be more inclined to trust offers to share in my future profits than offers have me pay now for an uncertain reward later.