HT: http://www.visualcapitalist.com/breaking-down-21-apple-product-flops-from-1980-2014/
Breaking Down 21 Apple Product Flops (1980-2014)
01 Jan 2016 Leave a comment
in economic history, entrepreneurship, industrial organisation, survivor principle Tags: Apple, creative destruction
Mobile phones dominate news website visits
28 Dec 2015 Leave a comment
in economics of media and culture, industrial organisation, survivor principle Tags: creative destruction, desktops, legacy media, mobile phones, new media
Time to reach 50 million users
27 Dec 2015 Leave a comment
in economic history, industrial organisation, survivor principle Tags: creative destruction, technology diffusion
I, Pencil Extended Commentary: Spontaneous Order
24 Dec 2015 Leave a comment
in applied price theory, Austrian economics, comparative institutional analysis, industrial organisation, international economics, survivor principle Tags: IPencil, spontaneous order, The meaning of competition
People still actually buy CDs!
24 Dec 2015 Leave a comment
in economics of media and culture, entrepreneurship, industrial organisation, survivor principle Tags: CDs, legacy media
I, Pencil Extended Commentary: Trade & Specialization
22 Dec 2015 1 Comment
in applied price theory, industrial organisation, international economics, survivor principle Tags: division of labour, international trade, specialisation and exchange
Which occupations are up and which are down
21 Dec 2015 Leave a comment
in economic history, human capital, industrial organisation, labour economics, labour supply, occupational choice, survivor principle Tags: creative destruction, skill biased technical change
Creative destruction in retailing
20 Dec 2015 Leave a comment
in economics of media and culture, entrepreneurship, financial economics, industrial organisation, survivor principle Tags: amazon, creative destruction
I, Pencil Extended Commentary: Creative Destruction
19 Dec 2015 Leave a comment
in applied price theory, economic history, entrepreneurship, industrial organisation, survivor principle, technological progress Tags: creative destruction, division of labour, entrepreneurial alertness, IPencil, specialisation and exchange, The meaning of competition
Labour productivity growth in the New Zealand retail services confounds Baumol’s cost disease
17 Dec 2015 Leave a comment
in applied price theory, economic history, industrial organisation, managerial economics, market efficiency, organisational economics, personnel economics, politics - New Zealand, survivor principle Tags: Baumol's disease, labour productivity
The coalition of obsolete industries still needs your support! Stop progress now?
14 Dec 2015 Leave a comment
in development economics, economic history, entrepreneurship, industrial organisation, survivor principle, technological progress Tags: creative destruction, entrepreneurial alertness, Luddites, The Great Enrichment, The Great Fact
What is creative destruction?
12 Dec 2015 Leave a comment
in economic history, entrepreneurship, industrial organisation, survivor principle, technological progress Tags: creative destruction, entrepreneurial alertness
Manufacturing as a proportion of GDP
11 Dec 2015 Leave a comment
in economic history, industrial organisation, survivor principle Tags: creative destruction, manufacturing industry
Are CEOs denied their labour surplus?
11 Dec 2015 Leave a comment
in applied price theory, entrepreneurship, fisheries economics, human capital, industrial organisation, labour economics, labour supply, managerial economics, occupational choice, organisational economics, personnel economics, survivor principle Tags: CEO pay, moral hazard, promotion tournaments, superstar, superstar wages
Bang Dang Nguyen and Kasper Meisner Nielsen looked at how share prices reacted to 149 cases of the chief executive or another prominent manager dying suddenly in American companies between 1991 and 2008.
If the shares rise on an executive’s death, he was overpaid; if they fall, he was not. Only 42% of the bosses studied were overpaid. Those with the bigger pay packages gave the best value for money as measured by the share-price slump when they passed away unexpectedly.
Share prices do speak to the value of the company and the contribution of its CEO. The share price of Apple went up and down by billions on the back of rumours about the health of Steve Jobs.
In terms of splitting of what some call the labour surplus increase from a firm hiring an executive, these employees retain on average about 71% and their employer keeps 29%. Others call this rent sharing.
71% going to the CEO might initially sound high, “but it’s not like he’s taking home more than he produced for the company,” says Nguyen.
The exploitation of CEOs gets worse when you consider the extensive use of promotion tournaments by their employers when setting their wages. They are thrust into rat races. Promotion tournaments are an integral and often invisible part of their workplaces.
Executive level employees are often ranked by their employers relative to each other and promoted not for being good at their jobs but for being better than their rivals. These promotion tournaments sent one employee against another – one worker against another – to the profit of the owners of the firm.
The rat race set up by the owners of the firm are so cutthroat that in competitions to determine promotions the capitalists who own the firm may find that their employees discover that the most efficient way of winning a promotion is by sabotaging the efforts of their rivals.
Lazear and Rozen’s tournament theory of executive pay has stood the test of time. The key to this rat race is the larger is your boss’s pay, the bigger the motivation for you as an underling to work for a promotion. As Lazear wrote in his book, Personnel Economics for Managers
The salary of the vice president acts not so much as motivation for the vice president as it does as motivation for the assistant vice presidents.
Utopia, you are standing in it! 
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