Futarchy As Meta Governance - by Robin Hanson

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While anyone can buy stock in public firms, private firms are instead held by a more concentrated and exclusive set of owners.

While anyone can buy stock in public firms, private firms are instead held by a more concentrated and exclusive set of owners. Such firms tend to make higher returns than public firms, and are more responsive to investment opportunities. They tend to be taken public when they reach a stable situation where managers can just “milk the cow”, while public firms tend to be taken private when they start to face many big new decisions. The basic idea is this: when CEOs of public firms make substantial and uncertain investments, they face the immediate judgment of market speculators, expressed in…

Futarchy As Meta Governance - by Robin Hanson

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