Subject: Re: business case for mechanized documentation
From: "Stephen J. Turnbull" <turnbull@sk.tsukuba.ac.jp>
Date: Fri, 14 Apr 2006 19:35:56 +0900

>>>>> "Thomas" == Thomas Lord <lord@emf.net> writes:

    Thomas> "free market": A market unobstructed by any restraints
    Thomas> imposed by Governments or other regulators.

    Thomas> I count patterns of nepotism as "other regulators".

Of course, nepotism exists, but it's a heck of a lot less permanent
than government and other regulators (by which is meant legally
enforced cartels such as Major League Baseball and union/closed shop
industries).

    Thomas> As is widely reported and known, current executive
    Thomas> compensations at the top end are the result of indirect
    Thomas> price fixing (via "compensation consultants") made
    Thomas> possible by an overall system of nepotism.

Reported, yes, but nobody has a clue.  Really.  We just do not
understand executive compensation.  Sure, there have been a number of
egregious cases, but that stuff has also gone out of fashion with
investors, and we're seeing something of a reaction.

Enough of a reaction, you ask?  Hey, didn't I just say nobody has a
clue?  *I* don't know!

The best I can say is that there's very likely a bias toward
overpayment of top executives.  Whether it's big enough to make it
worth doing something about (except out of pure spite for somebody who
makes more money than we do) is another matter.

    Thomas> You also have to be careful about treating "customer
    Thomas> value" as orthogonal to "what leading businesses happen to
    Thomas> do".

It's not orthogonal.  They may not be congruent, but that's far cry
from orthogonal.



-- 
Graduate School of Systems and Information Engineering   University of Tsukuba
http://turnbull.sk.tsukuba.ac.jp/        Tennodai 1-1-1 Tsukuba 305-8573 JAPAN
        Economics of Information Communication and Computation Systems
          Experimental Economics, Microeconomic Theory, Game Theory