Hacker News

Corporations Don't Have to Maximize Profits (2015)

14 points by speckx ago | 2 comments

graemep [-]

This is true in a narrow legal sense, but when directors are given incentives to maximise share prices in the short term, the business culture says that is their duty to do so, that is what they will do.

jdashg |root |parent [-]

It's also true in a moral sense though. Choosing "defect" rather than "cooperate" shall not be excused by game theory rationalization, appeal to popularity, or "just following orders".