Re:How Mondragon Became the World's Largest Co-Op
by zozbot234 on Sunday August 28, 2022 @01:36AM
(#32626052)
> I don’t see the economy as charity and I prefer to donate money to overtly non-profit entities rather than donating to “I am willing to make you less money” for-profit entities.
Somewhat counterintuitively, "I am willing to make less money" can be unusually effective, if the difference in how much money you're making is small enough. The intuition is that in non-fully-competitive settings, the creation of quasi-rents has quadratic costs on the economy as a whole, much like any other tax. So giving up a tiny bit of quasi-rent in an elastic market has outsized positive effects.
Somewhat counterintuitively, "I am willing to make less money" can be unusually effective, if the difference in how much money you're making is small enough. The intuition is that in non-fully-competitive settings, the creation of quasi-rents has quadratic costs on the economy as a whole, much like any other tax. So giving up a tiny bit of quasi-rent in an elastic market has outsized positive effects.