To whom it may concern:
This thread is for the discussion of Less Wrong topics that have not appeared in recent posts. If a discussion gets unwieldy, celebrate by turning it into a top-level post.
(After the critical success of part II, and the strong box office sales of part III in spite of mixed reviews, will part IV finally see the June Open Thread jump the shark?)
SilasBarta:
Well, is it really possible that lenders are so stupid that they're missing profit opportunities because such straightforward ideas don't occur to them? I would say that lacking insider information on the way they do business, the rational conclusion would be that, for whatever reasons, either they are not permitted to use these criteria, or these criteria would not be so good after all if applied on a large scale.
(See my above comment for an elaboration on this topic.)
Or maybe the reason is that credit unions are operating under different legal constraints and, being smaller, they can afford to use less tightly formalized decision-making rules?
These are not such different answers. Working on a large scale tends to require hiring (potentially) stupid people and giving them little flexibility.