Post by arfanho7 on Feb 27, 2024 21:08:16 GMT -6
If the spillovers are negative and the professionals only care about themselves and don t coordinate then there is an inefficiency in functioning as a platform says Hagiu. In that case it s incumbent on the firm to internalize the spillovers by coordinating its employees actions. A certain amount of competition among employees however can be good for a firm even in a platform model by incentivizing employees to put forth greater effort even without paying them a high commission.
Individual hairdressers may be advertising too much because they compete against one another says Hagiu but that has the advantage of also incentivizing them to exert more effort without requiring a higher bonus. By contrast in the traditional mode where the salon employs the stylists the competitive Indonesia Mobile Number List pressure is absent so the salon would have to pay a higher bonus in order to motivate them to the same extent. the optimal arrangement back toward the platform mode. So what does this have to do with the degree to which Uber and other companies control their employees The reality is most of these companies fall into a poorly defined gray area says Hagiu where creating the optimal incentives to maximize revenues for contractors and companies alike is a delicate balancing act of incentives and control. Yet the law as currently written creates a highly inefficient either or situation.
The way the law is today it forces you to make a binary decision You are either a platform enabling independent contractors or an employer that has to pay full employment costs says Hagiu. It is very inadequate for these marketplaces. Oftentimes the optimal model for a company might be somewhere in the middle—controlling some aspects of contractor performance but not others a situation that current regulations do not yet account for.
Individual hairdressers may be advertising too much because they compete against one another says Hagiu but that has the advantage of also incentivizing them to exert more effort without requiring a higher bonus. By contrast in the traditional mode where the salon employs the stylists the competitive Indonesia Mobile Number List pressure is absent so the salon would have to pay a higher bonus in order to motivate them to the same extent. the optimal arrangement back toward the platform mode. So what does this have to do with the degree to which Uber and other companies control their employees The reality is most of these companies fall into a poorly defined gray area says Hagiu where creating the optimal incentives to maximize revenues for contractors and companies alike is a delicate balancing act of incentives and control. Yet the law as currently written creates a highly inefficient either or situation.
The way the law is today it forces you to make a binary decision You are either a platform enabling independent contractors or an employer that has to pay full employment costs says Hagiu. It is very inadequate for these marketplaces. Oftentimes the optimal model for a company might be somewhere in the middle—controlling some aspects of contractor performance but not others a situation that current regulations do not yet account for.