[ExI] Alcor management

Rafal Smigrodzki rafal.smigrodzki at gmail.com
Sun Feb 3 16:19:26 UTC 2013

I found this on cryonet:

> 4.  I believe having a Board of Directors who does not answer to anyone
> else is not good for bringing out the best in Alcor's directors.  You can
> not expect the best work from those who are not held accountable.  Changing
> back to having the membership elect the Directors would help Alcor more
> than any other thing you could bring about

### Bad, bad idea. Alcor is (or should be) a business, not a democracy
or a cooperative.

Clients efficiently influence businesses by choosing between using
their services and paying for them, or going somewhere else - this is
the exit option. Most people exercise the pay or leave option in a way
that maximizes their utility, weighing both cost of service and its
quality versus competing offerings. They do that without knowing the
internal details of how the business works yet their choices still
force businesses to stay cheaper and better than their least efficient
competitor (this insight is the basis of marginal analysis). Business
managers either find out how to run their business efficiently enough,
or somebody else eventually will compete their clients' money away
from them, and this is a powerful incentive to search for the best

A business that lets its paying customers directly control it with
voice (which is costless to use) is likely to act very inefficiently.
Clients usually do not know how to best run a business (it is not
*their* business, only a business they have business with), and
letting them dictate the details of how it is run will likely ruin it.


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