Software, Digital Content, Geopolitics, Economics & More from of a Libertarian Serial Expat and Entrepreneur
"Moral hazard happens when the actions of an agent can be hidden from a principal, creating agency costs – because the agent is able to shirk, take additional risks, and generally not deliver on his end of the bargain. In this case, the moral hazard is that the record industry, because listeners can’t monitor or influence it, can effectively shirk, and choose artists not based on listeners’ preferences, but based on business efficiencies. This is effectively what the record industry has been doing – adding massive agency costs that replace the search value it is supposed to provide."
I'm CEO of an online trade publishing firm in the marketing and defense verticals. We try to make news and data digestible and useful in an environment that is more noisy each day. This personal blog mixes my thoughts and interests on politics, business, software, and more, based on my business and personal experiences. Over the years I have posted items that turned out spectacularly wrong, and a few posts that stood the test of times better. Personal views only.