Fortune Favors the Bold; Markets Favor the Meek
By Bryan Caplan
Shrewd labor economics from the latest issue of Entertainment Weekly:
For an actor, speaking out about contract demands may seem like a smart PR or legal move, but the strategy can often backfire in Hollywood when it comes to landing the next job. After all, who wants to work with a troublemaker always looking for a bigger payday?
We often think of hard bargainers as good bargainers. The truth, though, is far more interesting. At best, hard bargaining is a high-risk strategy. In the long-run, if word gets around, hard bargaining is just plain stupid: The only people willing to deal with you will be other people who habitually insist on the lion’s share.
If you don’t believe me or EW, how about the guy who should have won the Nobel Prize?