Essays Flashcards
1
Q
Team Essay
- Tragedy of commons:
- Example: incentive problem is that
- Solution:
- Common interest can
- In large groups individuals have to
- The common interest of teams may
- _____ found that the most successful communities minimized the free-rider problems by
A
- Using resource without care, land, labor, capital, technology, entrepreneurial talent
- the main incentive is a shared one, that of grades.
- Grading group members at end and having that influence final grade
- more effectively motivate small group.
- put forth more effort and opportunity cost for their contribution to be noticed, therefore are more likely to free ride
- be unbalanced, especially if teams are made by the professor.
- Kanter
- restricting entry into the community. In a class where you can make your own group you can restrict it to those who you know have the same common interest (Getting As)
2
Q
Wage Essay
- Price (of labor) is a
- Ford bought extreme loyalty buy
- Not all labor is equal,
- How much does_____ affect her business. If her employees are
- On the other hand, if, like ford, she wants to pay them a premium for a high amount of loyalty and control over demand it may be worth it for her to pay.
- She should consider giving raises to those who have the highest ability to
- If her employees stick around for a long time, she could consider a twisted pay scale, where she underpays her junior staff and overpays her senior staff. Creating long term employee buy in. But she would have to make a CREDIBLE COMMITMENT to the employees to do that.
- Also consider not giving a flat raise, but adding an incentive program based on performance, which will reward your hardest working employees
A
signal wrapped up in an incentive
paying almost double the market wage
paying a premium for better labor can be worth it
turnover
low skill and easily replaced, it may not be worth paying a premium to keep them
abuse the resources of the company to incentivize them away from doing that.
