4 ms·

I don’t think my words were abrasive. I was just pointing out that there exists financial incentives that disfavor co-op formation. If my argument, which is opp

by rcme 3y ago

I don’t think my words were abrasive. I was just pointing out that there exists financial incentives that disfavor co-op formation. If my argument, which is opposed to your argument, assumes “founders act as rational market participants” doesn’t that imply your argument assumes market participants act irrationally? Of course people act irrationally all the time, but what seems more likely on the whole, especially in regard to money?

hnbad 3y ago
Friend, I have worked in advertising. The entire industry hinges on humans acting irrationally in regard to money. Humans are irrational actors. The rational homo economicus is an abstraction to give economists something to work with. Corporations act somewhat rationally in aggregate only because the people in charge of them are bound to do so by law. And even this breaks down when the corporation is directly run by one person who also owns it. "Market participants" is not what we're talking about. "Market participants" includes corporations and other forms of organizations that impose strict controls on their own behavior. We're talking about humans. And humans are very irrational. They're just also very good at rationalizing their irrational behavior and prefer doing things they can rationalize.