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I think a lot of how companies behave is defined by how they are constructed in law. For example, limited liability allows shareholders of companies to to be sh
by advael 3y ago
I think a lot of how companies behave is defined by how they are constructed in law. For example, limited liability allows shareholders of companies to to be shielded from the consequences of "externalities" that their companies cause, which drastically changes their risk landscape compared to a counterfactual world where people were still legally responsible for their actions even when trying to make money
- Eddy_Viscosity2 3y agoEven in this counterfactual world, and likely EVERY counterfactual world, people with lots of money (which equates with power) will always develop a system that will shield them from accountability. Any system like this is self-reinforcing because a few people with more money will always have a greater influence on 'the system' than the larger number of people with less money.
- advael 3y agoIt's inevitable that people with power will use that power to their advantage. But the degree and the ways in which this is possible permit a vast spectrum of degrees, and adjusting this is a feasible problem of mechanism design. Limited liability in its present form is not an inevitability