I am going to write about the incentives of Brookers.
Wheelan argues that Brookers were incentivized to sell as many loans as they
can, because they were receiving commissions from them. I argue that the
incentives of brokers affect my everyday life. Firstly, they are trading
currencies, commodities, and shares. This everything affects you. The price of
Oil is based on the actual price on the market. What if the brokers with oil
are wrongly incentivized (such as in the example with selling mortgages) to
sell the oil. The price would probably go down, because no one would like to
buy it anymore. Lower price of oil = cheaper gas. Also in the long run, if a
broker is badly incentivized to sell stocks of a company, the company would be
evaluated poorly, which can result in bad season for the company. Less money
for the company probably means less jobs for me. It is scary to think how much
of your life is actually influenced by people with simply bad incentives.
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