Guaranteeing a minimum price also means there is no incentive to improve quality, grumble coffee-drinkers, who find that the quality of Fairtrade brews varies widely.
As more report, the quality line below which firms have an incentive to produce reports drifts down.
No wonder: writers were paid by the word at the time, creating an incentive to produce quantity rather than quality.
If the banks enjoy too much protection, they have little incentive to compete on price or quality with other banks, or indeed with non-banks offering similar services.
These providers have tremendous incentive to measure, report and improve quality-of-care, patient experience and cost.
There is not much incentive for individual growers to sacrifice quantity for quality because their grapes are sold by weight to agents who lump together fruit from dozens or hundreds of individual growers.
There are so few good funds out there because there is no incentive for funds to work hard at putting together quality portfolios.
FORBES: Financial Sector Funds And ETFs Need Less Citi, More Discover
So we try to fix that here and change the incentive so that there is no institutional bias to deny quality care.
And fifth, the ability of others to free-ride on the plaintiff would so reduce the incentive to produce the product or service that its existence or quality would be substantially threatened.
FORBES: The Internet Age And The "Hot News" Doctrine Converge
The product essentially automates employee referrals, by far the highest quality source of hires, while helping existing workers reap the benefits of referral incentive programs with minimal effort.
FORBES: With Facebook, Your Recruitment Pool Is One Billion People
In other words, we expect that students do have an incentive to minimize their costs (unless the subsidy program is set up in such a way to negate that incentive), though the fact that students use price as a proxy measure for quality in higher ed likely significantly dampens this effect.
Maybe the public-sector premium arises from an incentive problem and hence higher public-sector pay can be used as an indicator of poor quality in this sector.
So there is a powerful incentive to sell higher-grade but lower-yielding loans, with a subsequent decline in the quality of banks' balance sheets.
ECONOMIST: ��Structured finance�� can bring unstructured losses
应用推荐