воскресенье, 24 октября 2021 г.

The market economy and reputation


  In market conditions, the larger the firm, the more profitable for it is to take care of its reputation. One-day firms, in particular, can only be small. It turns out that it is often beneficial for small firms to merge into large ones, but in practice this rarely happens for a number of reasons. However, there is another way: a large aggregator firm that provides quality control of the work of many small firms, providing them with a collective reputation. An example of such an aggregator is Uber, which has brought together small taxi drivers, providing them with a kind of collective reputation.
  I believe it would be a great good if there were Uber analogues for nannies, housekeepers, repairmen, electricians, etc. Such a company would take a share of the earnings of these nannies and housekeepers, and in return, check the quality of their work, and fire those who did not perform well. There is a kind of paradox here - it is beneficial for an individual nanny to have her work checked with the possibility of dismissal in case of poor quality of work, since those nannies who pass the selection will have a good reputation, and this is very beneficial for them. As an example, I can cite ordinary taxi services: if there are many complaints about a driver, the service fires him, despite the fact that he brought it money.
  If there is an analogue of Uber for nannies, it will solve the problem of fertility in Western countries, as well as the problem of “Idiocracy”, since people will be able to combine education, career, and childbirth (parents will outsource parenting to a good nanny).
  Further, I propose a new concept: “socially useful commercial advertisement”. This is a commercial advertisement that is useful and beneficial for three parties: the advertiser, the media that hosts it, and the end consumer. The principle of this advertisement is essentially based on the same “taxi principle” described above - to terminate the contract with unscrupulous advertisers for the sake of collective reputation.
  Suppose there is a firm that makes cereal breads; these breads are good for health, and the company knows about it. Further, this company offers some media to place an advertisement, and offers to conduct a study (expertise) on the impact of these breads on health. Because expertise is expensive, the firm also pays relatively large sums of money for it. Here again the mentioned principle comes up - not always “those who pay the piper call the tune”. For the media, if it is large enough, reputation is more important than this money, therefore it is interested in conducting an honest examination; in other words, money is received for the examination, but not for its result. And this is already beneficial to end consumers.
  It can be assumed that many bloggers ask themselves similar questions when they advertise. Obviously, it is more profitable for a blogger to advertise a relatively high-quality product than a low-quality one.

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