Theme: Incentives

  • Tech isn’t a competitive advantage, Experienced talent, credit, and operational

    Tech isn’t a competitive advantage, Experienced talent, credit, and operational excellence through management and training, cant be bought.


    Source date (UTC): 2015-10-01 09:29:00 UTC

  • TECHNOLOGY IS NOT A COMPETITIVE ADVANTAGE: EXECUTION IS. Technology is not a com

    TECHNOLOGY IS NOT A COMPETITIVE ADVANTAGE: EXECUTION IS.

    Technology is not a competitive advantage. Nothing stops a competitor from duplicating functionality or buying hardware and software.

    A competitors advantage is created by your failure to rapidly fill niches and thereby denying them the field, without simultaneously overextending yourself.

    For these reasons experienced talent, credit, and operational excellence through management and training on execution are your competitive advantage.


    Source date (UTC): 2015-10-01 06:17:00 UTC

  • CAPITALISM, MIXED, SOCIALISM : A EUGENIC VS DYSGENIC GAME RIGHT: Capitalism: the

    CAPITALISM, MIXED, SOCIALISM : A EUGENIC VS DYSGENIC GAME

    RIGHT: Capitalism: the voluntary organization of production as a the result of the incentives that result from the anarchic evolution of money, prices, exchanges and contracts under the single principle, norm, regulation or law of the voluntary exchange of private property. This process is naturally meritocratic and eugenic and therefore scientific, which is the reason why the marxists despise it.

    CENTER: Mixed economy: the voluntary organization of production of capitalism, combined with the involuntary confiscation and redistribution of the proceeds of production. It can be dysgenic or eugenic, meritocratic or not, depending upon the amount of confiscation and the use of confiscated proceeds. This is the least worst option in which neither lower nor upper classes can obtain better conditions. (Like marriage).

    LEFT: Socialism: the involuntary organization of production and the distribution of proceeds independent of the contribution to production. It is dysgenic and non meritocratic, and provides insufficient incentives to produce enough to meet demands. But this prevents the lower classes from being ‘left behind’ which is their central intuitionistic fear.


    Source date (UTC): 2015-09-29 04:50:00 UTC

  • INTUITIVE ECON: THE INTERNET INCREASES PRICES —Economists have two standard ve

    https://shar.es/17xxNnCOUNTER INTUITIVE ECON: THE INTERNET INCREASES PRICES

    —Economists have two standard very simple models of product competition: firms can compete on price or compete on quantity.—

    —“whether firms compete on price or quantity depends more on which of these they must commit to earliest, not which is easier to change at the last minute. Knowing this, once you heard that it would be easier to change prices at the last minute for products sold on internet, you should have predicted that the internet would increase quantity competition and reduce price competition. Which it in fact has. Economics is general and robust enough to predict things like how selling products on the internet changes competition. But you have to use it right.”—

    The author is trying to make a different point, but I want to riff off it to show that firms compete in commodity and non-commodity spaces. And to some degree economists study commodity activity where noise and signal cancel one another out. But that isn’t how companies think about competition, it’s how distributors do.

    I have taught the following means of competition by firms:

    1) Price,

    2) Quantity,

    3) Profitability or Debt

    4) Rents (firms like polities accumulate renters)

    5) Adaptation Costs (innovator’s dilemma).

    6) Geographic Housing Costs (salary costs)

    7) Segmentation (startups start in niches and expand)

    Why? Decreasing production cycles, increasing distribution of production, the increasing importance of TALENT and innovation service industries. vs capital or credit in manufacturing and distribution companies.

    In a highly efficient market, one can sacrifice profits for talent while larger organizations accumulate internal rents. This is most frequently the reason

    Generally speaking, higher profits incentivize more rents. And while prices are sticky, internal rents are much stickier than prices.

    Generally speaking, adaptation costs vary dramatically from industry to industry: service firms trade out people and production firms trade out people and capital. The difference being that GAP regulation and tax policy obscure the tail of fixed vs human capital, largely because we can finance against the illusion of fixed capital value while we cannot finance against the obvious lack of control over human capital.

    Curt Doolittle

    The Propertarian Institute

    Kiev, Ukraine


    Source date (UTC): 2015-09-27 18:43:00 UTC

  • Q&A: CURT, WHAT DO YOU THINK OF PREDICTION MARKETS? —“what do you think of pre

    Q&A: CURT, WHAT DO YOU THINK OF PREDICTION MARKETS?

    —“what do you think of prediction markets?”—

    Unfortunately, this is an incomplete question. 🙂 To have an opinion I must have some outcome (context) to judge them. As an empirical means of obtaining excellent information and overcoming journalistic bias, I think that they are very close to self-insured propositions. And as a Propertarian and Testimonialist, I have nothing but good to say about them as experiments in demonstrating the LACK of quality of the opinions of public intellectuals. (which I think we all know is only useful as a set of propositions to choose between, not as particularly predictive.)

    But it’s possible that your question may intend to ask whether we may institutionalize prediction markets for some particular end. And I’d have to know that end in order to answer it.


    Source date (UTC): 2015-09-20 09:38:00 UTC

  • MISES – FROM BOETTKE’S PAGE —“Curt Doolittle and Chris Cathcart — I am not s

    MISES – FROM BOETTKE’S PAGE

    —“Curt Doolittle and Chris Cathcart — I am not sure I get your point that [Mises] will never get credit … he already does!”—Peter Boettke

    Well, we all agree that he gets credit for stating that socialism was impossible. The question is whether he did so using justification from axiom, or by analysis of available information, available operations, and rational incentives.

    I don’t think anyone argues that his insight was correct. What I argue is that he, like Freud, Boaz, Cantor, Marx, (Mises), the Frankfurt School and Rothbard, demonstrated the pervasive Cosmopolitan error of creating an authoritarian pseudoscience in justification of his priors, rather than engaging in science for the specific purpose of eliminating error, bias and priors, wishful thinking and deceit from one’s theories.

    All knowledge is theoretical because outside of trivialities and tautologies, no premises are certain. Einstein demonstrated that if we cannot count on a concept such as length or time, that no premise is informationally complete enough to deduce necessary consequences. An axiom is a declarative construction – an analogy to reality, and is informationally complete. But no non trivial statement about reality is informationally complete. It cannot be. (hence critical rationalism and critical preference). Science is not justificationary, it is critical: we do not prove something is true, we see if it survives criticism. And the only test of existentially of any hypothesis is operational construction. As such praxeological analysis tests whether a statement CAN be true. So we cannot deduce all of economics from first premises (particularly the incomplete sentence “man acts”). We can observe (empirically) the unobservable, and then construct the observation out of rational actions to test if it is a truth candidate. But we cannot deduce all candidate operations from first principles – demonstrably so.

    As such correctly positioning Mises in intellectual history as the another failure of the 20th century thinkers to complete the evolution of the scientific method from moral and justificationary to objective and critical.

    This demonstrates that mises was, like Brouwer and Bridgman and Popper, attempting to eliminate the evolution of 19th and 20th century pseudoscience that Hayek warned us was the advent of a new form of mysticism.

    Unfortunately, Bridgman and Brouwer did not understand Popper, Hayek could’t put the fields together because he started with psychology rather than ‘calculability’ and ‘computability’. Mises correctly understood calculation but not computability, nor the relation between computably and subjective human incentives. Mises missed the boat by trying to create an pseudoscience or authoritarian logic to suppress pseudoscientific innumeracy in economics.

    What none of them realized – Popper included – is that the scientific method is a MORAL WARRANTY of due diligence in the elimination of error, bias, wishful thinking and deceit. And that what each of them had done was attempt to prevent the emergent pseudoscience of the Cosmopolitans and Postmodernists that for all intents and purposes functions as the second ‘christianization’ of Europe, this time, by pseudoscientific rather than mystical means.

    And that mises had incorrectly conflated logical necessity with adherence to the necessary morality of voluntary cooperation.

    This is a very profound insight into intellectual history.

    If I wanted to reform Mises I could. But that isn’t necessary. The world has moved on. Instead, the problem we face in our generation is not socialism, but postmodernism and lingering Cosmopolitan pseudoscience and innumeracy in the social sciences. We face pervasive mysticism, pseudoscience, innumeracy, propagandizing, and outright lying in politics and daily life after more than a century of diluting our education in grammar, rhetoric, logic, history and morality.

    Undermining Rothbardian fallacies is just as important as undermining socialist, postmodern, democratic secular humanist, and neo-conservatism.

    And unfortunately to undermine Rothbardian fallacies requires we undermine the fallacies that Rothbard depends upon in his arguments. And to some degree that means doing greater criticism of Mises than we might like.

    A philosopher’s followers can ruin his legacy. His did. There is Precious little Austrian in Mises to start with. He is from Lviv Ukraine, and a Cosmopolitan author in genetics, culture, and method of argument. He is not a scientist. He is attempting to write scriptural law. And he makes consistent errors of conflating law, hermeneutic interpretation in the construction of his insight: it’s not moral or true if it’s not constructible out of rational human actions, and it’s not calculable, moral, and true for human beings to attempt rational planning in the face of state-manufactured deceit. There is very little difference between postmodern propagandism and monetary manipulation. They are both disinformation campaigns designed to alter public behavior to state rather than individual, family, group and tribal ends. So it is not that state interference in the economy cannot be studied in the discipline of economics. It is that doing so studies disinformation, whereas the study of fully informed voluntary cooperation free of error, bias, wishful thinking and deception is the study of moral economics.

    In retrospect it’s not complicated.

    So while I partly agree with you, the damage done by his fallacies to the progress of liberty, and their amplification by rothbard/HHH/MI, have been far more harmful than good. LR at MI tried to use Alinsky’s model of creating propaganda and community. But this battle was above the heads of these people. Whether well intentioned or not.

    Curt Doolittle

    The Propertarian Institute

    Kiev, Ukraine


    Source date (UTC): 2015-09-18 04:29:00 UTC

  • TO FEMINIST RALLYING, THE TRUTH IS UNPLEASANT: HIRING A FEMALE CEO IS A NEGATIVE

    https://www.linkedin.com/pulse/think-crisis-female-why-women-leaders-confront-glass-cliff-cooperCONTRARY TO FEMINIST RALLYING, THE TRUTH IS UNPLEASANT: HIRING A FEMALE CEO IS A NEGATIVE INDICATOR

    The primary reason that women and minorities are put into power because they lack the ability to alter the status quo through the construction of stress-bearing loyalties. Boards hire them as weak placeholders – a strategy of delay an wait.

    The assignment of a woman to a leadership position in a troubled company is an admission by the board that they cannot come to consensus on a strategy, or that they have exhausted available strategies, and that further investment in the firm will perform negatively.

    They are aware that a woman and minorities will be willing to take the position due to the status perk of obtaining a rare executive position even while winding a company down, while men will not find status in such an effort, but failure.

    They are also aware of the positive PR that such appointments generate, and the negative that white male appointments generate under duress: in other words, the media will criticize a white male on his abilities, and laud the progressive appointment of a woman or minority in the hope that he or she succeeds. So the company is buying resistance to criticism by the press.

    Women and minorities will readily walk off the glass cliff because they are desperate for status from other women and minorities for having obtained a rare position. Men of equal ability will evaluate taking such a position as career ending and avoid it. Women having held such a status position can hold that status even after their failure. Men having failed will carry the stigma of failure, not the status of having obtained a rare position. So the long term consequences of an executive position in a declining company vary by gender and race.

    The glass ceiling exists because women are less loyal to their faction under stress than men of equal abilities. Meaning that men view women as less trustworthy. So, men view women (subconsciously) as untrustworthy under duress, if not weak allies at all times, and thereby untrustworthy in general. Conversely, this weakness means that the status quo will not be upset, and further confusion created if a woman or minority is appointed.

    Lastly, any professional c-level executive is very well aware prior to taking a position, of the prospects for the company. These things may seem complex to non-professionals, but in general it’s a matter of talent, alliances, incentives, assets, debt and time.

    I’ve been writing and talking about this topic for two decades now. Outside of obvious industries selling consumer products to women, boards choose women execs as an admission of failure. (Xerox, HP, Yahoo…) Even Meg Whitman was a placeholder for the two founders.

    Truth hurts. Science is uncomfortable. But it is what it is. We are unequal. And that’s a good thing.

    Curt Doolittle

    The Propertarian Institute

    Kiev, Ukraine


    Source date (UTC): 2015-09-17 03:56:00 UTC

  • How do we create commons without rent seeking? Not how do we not-create commons

    How do we create commons without rent seeking? Not how do we not-create commons to avoid rent seeking.


    Source date (UTC): 2015-09-09 09:33:27 UTC

    Original post: https://twitter.com/i/web/status/641544940296773632

    Reply addressees: @wolfe_fan @mdavilamartinez

    Replying to: https://twitter.com/i/web/status/641484405056253953


    IN REPLY TO:

    @sacrorum_rex

    @mdavilamartinez I’ve thought of something I call “post-libertarianism”, something that can incorporate guys from Hoppe to Aristotle

    Original post: https://twitter.com/i/web/status/641484405056253953

  • Empirically because people don’t demonstrably act as such unless they’re shepher

    Empirically because people don’t demonstrably act as such unless they’re shepherds or gypsies. It’s unrewarding.


    Source date (UTC): 2015-09-09 06:21:08 UTC

    Original post: https://twitter.com/i/web/status/641496540444532736

    Reply addressees: @mdavilamartinez @wolfe_fan

    Replying to: https://twitter.com/i/web/status/641487346425139200


    IN REPLY TO:

    Original post on X

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    Original post: https://twitter.com/i/web/status/641487346425139200

  • Cool conversation. Ancap/rothbard ironically fails praxeologically (incentives).

    Cool conversation. Ancap/rothbard ironically fails praxeologically (incentives). And empirically.


    Source date (UTC): 2015-09-09 06:20:01 UTC

    Original post: https://twitter.com/i/web/status/641496261795950592

    Reply addressees: @mdavilamartinez @wolfe_fan

    Replying to: https://twitter.com/i/web/status/641487346425139200


    IN REPLY TO:

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    Original post: https://twitter.com/i/web/status/641487346425139200