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And what benefit does the economy and society get by allowing monopolization of these strategies by a single company at the expense of basic right for workers t
by izacus 3y ago
And what benefit does the economy and society get by allowing monopolization of these strategies by a single company at the expense of basic right for workers to switch jobs to the ones that pay them the most?
It sounds so profoundly anti-capitalist - if the knowledge of certain strategy is so important, the employee should be retained by paying them more and giving them better perks instead of enforced labor contract.
- infecto 3y agoI am not defending for or against not sure why you replied to me. But I think it is slightly silly reading your statements knowing that the individuals in that hyper specific industry are top earners already and educated to know what they are signing up for.
- lordnacho 3y agoThis is exactly the right question. If quant firms make the world a better place by tightening spreads - a common justification - then wouldn't we get an even better place if everyone knew about these strategies?
- durumu 3y agoA counterargument here is the effects on internal transparency. If a quant firm knows its employees can leave and join a competitor tomorrow, they will be less forthcoming with IP. The lack of openness could lead to lower productivity within the firm, as work gets duplicated and teams can't share their insights with each other.
- eszed 3y agoAs long as we're throwing around generalized hypotheses, a company that shared internal IP freely, and also compensated people such that they didn't leave, would gain a lasting competitive advantage.
- golergka 3y agoIf you can’t protect your IP, you don’t have a reason to develop it in the first place.
- deleted 3y ago[deleted]
- burnerburnson 3y agoThe benefit to society is the same as patents or copyright. Companies will be more likely to invest in developing new technology if they are confident their competitors won't be able to use the result.
- latency-guy2 3y ago> It sounds so profoundly anti-capitalist Only if you have an extremely vague and poorly defined definition of "capitalist", which I don't blame you, most people are ignorant, and we live in a society that prefers to throw out opinions like they're reality.
- tomp 3y agoI'd say it's the opposite, non-competes (or similar agreements) actually prevent monopolisation. Otherwise, the biggest firms (e.g. Millenium, Citadel) could simply "buy out" any already-successful researcher, offering them more money (either in terms of % of profit, or - more importantly as it scales with size (for many strategies) - offering more capital to trade with.
- Dylan16807 3y ago> if the knowledge of certain strategy is so important, the employee should be retained by paying them more and giving them better perks This particular suggestion breaks down fast when you have multiple employees that need to collaborate. If you have a million dollar strategy, you can pay half a million to an employee as a retention bonus. But you can't pay half a million each to 8 employees.