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How to hire smarter than the market: a toy model · Erik Bernhardsson

erikbern.com · 2,408 words · saved by 1 readers

Why hiring always means tradeoffs, and how to turn a competitive market to your advantage.

How to hire smarter than the market: a toy model 2020-01-13 Let's consider a toy model where you're hiring for two things and that those are equally valuable. It's not very important what those are, so let's just call them "thing A" and "thing B" for now. For one set of abilities, the scatter plot looks like this: The assumption here is that A and B are drawn from a 2D-Gaussian with a mild positive correlation. I crammed a whole lot of stuff into this plot: the scatter plot shows the distribution of A vs B, and the two histograms (on top and on the right) shows the distribution over A and over

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