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Well, it's the difference between getting paid (salary, fixed, no logical incentive to grow/improve) versus getting paid (percentages of benefit, the more benef
by jorendorffmoz 12y ago
Well, it's the difference between getting paid (salary, fixed, no logical incentive to grow/improve) versus getting paid (percentages of benefit, the more benefit you create the more you make, growing non-linearly with your actual output).
(postlude)
It occurred to me this morning that even in theory, market economies don't pay to the seller a percentage of the buyer's benefit. They never do: it's not how they work. The full area under the demand curve, above the line indicating price, accrues to the buyer. Buyers that get a very great benefit (tangible or intangible) out of buying a pencil, a gallon of gas, or a computer generally pay the same price as those for whom the benefit is very slim; and there is no limit to that benefit.
This is mostly beside your point, I know. I just thought it was a nice idea, worth sharing.