Those of you who regularly read this blog (both of you) know that a continued theme is one of management decision making and behavior in the face of economics incentives. A friend recently characterized this as "if long term customer success is such a powerful idea, why don't firms do it?"
Well, it's interesting to study management decision making in a different context to see if anything can be learned. Most of us are tuned in daily to congressional testimony (yeah right) so I'm sure that this piece from Andrew Lo of MIT's Sloan School didn't escape your notice. Skip past the theory and you get this interesting behavioral vignette: