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A comment on Massachusetts Governor Announces Plan to Abolish Noncompetes. Parent comment

Re:Massachusetts Governor Announces Plan to Abolish Noncompetes by ghaff on Thursday April 10, 2014 @01:35PM (#7568181)
Economic theory would suggest so. I suspect that, adjusting for everything else, it's a pretty small effect. Would be an interesting study though. I wonder if there's one there.

[EDIT: Duh. I misread the original post. Of course, the salary should be higher not lower to compensate for such a restriction--though I still suspect it would be small.]

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Re:Massachusetts Governor Announces Plan to Abolish Noncompetes by nickff on Thursday April 10, 2014 @02:13PM (#7568500)
What economic theory would suggest this? This non-compete appears to be an option, and would be priced as such.[1] I would guess that purchasing any additional assurance from an employee would cost the employer(s) more, perhaps in the form of salary, severance, or a signing bonus.

[1] http://en.wikipedia.org/wiki/Valuation_of_options

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Re:Massachusetts Governor Announces Plan to Abolish Noncompetes by ghaff on Thursday April 10, 2014 @02:21PM (#7568581)
You're, of course, correct for the reason that you state.
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