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New theory on fairness in economics targets CEO pay
PhysOrg.com - latest science and technology news stories —
... said. "Even in the United States, the CEO pay ratios in the 1960s and 1970s were much more reasonable and in general agreement with the ideal values. So the executive pay excesses appear to be a recent phenomenon. This appears to be another valuation bubble - the CEO valuation bubble - much like the ones we have witnessed in stocks, real estate, commodities, etc." More information: "What is Fair Pay for Executives? An Information Theoretic Analysis of Wage Distributions," Entropy , http://www.mdpi.com/1099-4300/11/4/766 Source: Purdue University ...
New theory on fairness in economics targets CEO pay
Eureka! Science News - Popular science news —
... said. "Well, it turns out that the same concepts and mathematics used to solve problems in statistical thermodynamics and information theory also can be applied to economic issues, such as the determination of fair CEO salaries." Findings appeared Tuesday (Nov. 3) in the online open-access journal Entropy . The paper, "What is Fair Pay for Executives? An Information Theoretic Analysis of Wage Distributions," is available for free downloads from the Entropy site at http://www.mdpi.com/1099-4300/11/4/766 A key idea in his theory is the economic interpretation of the concept ...
Chemical Engineer Solves The Capitalism Problem
Scientific Blogging —
... value, hardly a jail term offense. Venkatasubramanian may not agree with the salaries of sports athletes either, where the ratio of highest player to lowest is over 100:1 but outside the pristine world of numerical models, where companies want the best people, the free market he claims to extol does not obey arbitrary limits. Article: Venkat Venkatasubramanian, 'What is Fair Pay for Executives? An Information Theoretic Analysis of Wage Distributions', Entropy 2009, 11(4), 766-781; doi:10.3390/e11040766
