and/or that they use bad incentives. public held corporations usually get outperformed by family owned entities due to better long term planability. Even Managers optimize for whatever they get payed by.
public held corporations usually get outperformed by family owned entities
Really? Robin linked to a paper suggesting that firms floated on the stock markets have better management than family-owned firms.
I'm trying to better understand the relationship between incentivization and rationality, and it occurred to me that it is a "folk fact" around here that large financial incentives don't make cognitive biases go away.
However, I can't seem to find any papers that actually say this. It's not easy to google for (I have tried) so I wonder if the Less Wrong collective memory knows how to find the papers?
Is there a pattern to which biases go away with incentivization? Do we have at least 5 examples of biases that go away with incentivization and 5 examples that don't go away with incentivization?
As an incentive, I'll paypal $10 to the commenter whose answer is least biased and most useful.