Mentioned here is political in the best sense of the term

With the current, sometimes fraudulent financial market unrest, seen flourish the theme of the "young irresponsible", traders or other, living in an unreal world almost akin to a video game. It is true that the image is appealing. Of callow just graduate or barely thirty manipulating huge sums and winning passage of hardly justifiable remuneration, it can only leave perplexed. Would they even completely immature irresponsible as it is sometimes Not sure. For in contact with a number, they do seem no more nor less immature than others. They are very often quite brilliant, workers, open and interested in issues that have nothing to do with economics or finance.

Then, if the "children" are not alone in question, what about the "parents" A detour through research can help illuminate one of the most complex issues stirring different academic communities (finance, economy, human resource management, law, etc.) long, that incentives: how to compensate the effort How to reward good results or sanction the failure Any Manager in charge of a team encountered a day or the other on these questions, all the more sensitive when performance is hardly observable and the asymmetry of information between that which is the operation and those who control large, frequent situation finance. The concept of contract is often at the heart of the proposed solutions. To simplify, the idea is that we can define a smart contract between operators and managers in relying on incentive mechanisms that align the interests of the parties (everyone would interest to ensure that the contract is respected). In this vision of the world, the behaviors are structured by "extrinsic" incentives: a foreign player in the action itself compensates the operator, and it is this "external" compensation motivates action. This vision has been the subject of many critics, who argue that this scheme is source of perverse effects, promotes purely utilitarian behaviors, or even destroyed the motivations "intrinsic" to the players to create, innovate, or simply engage in belief.

A very serious (1) experimental research published a few years illustrates the debate. The framework of the action consists of crèches in which the Director is often fighting that parents recover their children at the time the evening. Two incentives schemes are tested: in the first, despite the fatigue and delays, it just simply repeat: "you must be at the time, it is part of the rules of functioning of our community." in the second, told the parents: "now, if you are late, you will pay a fine!". What happened actually Well, the implementation of the second schema caused an increase in the number of delays! Why Because as indicated by the title of the section of the "Journal of Legal Studies" ("A fine is a price"), setting a price through a contract was eventually overwrite the more powerful engine represented by the sense of the collective and critical values (punctuality, consideration for the staff of the crèche)...

Back to finance. Regularly, some of its leaders openly admit that they are themselves shocked by remuneration, often higher than their own, to get some operators. The technical argument is that these operators affect very low percentages of transactions, but that these transactions represent such amounts that in fine, setting out winning and... these very rich operators! Of course, but it responds in part to the question: how we come to develop contracts in which there is a such disconnect between work, time spent and the captured value How to justify this to actors and other sectors, by working as with equivalent levels of jurisdiction, also contribute to creating value and derive personal profit "reasonable" These leaders, told the story of the Nativity (there are other examples...). But, resigned, they say in General: "Of course, it is aberrant, but entire market is like this at the global level." Perhaps, but when the children eventually cost, is it not also the fault of the parents Remember that the relationship between the effort provided and obtained compensation must have a sense, that all is not necessarily a price and that it is not required to pay for any part of their role. Mentioned here is political in the best sense of the term. Stay in a framework of thought, where the only problem is technical in nature and focuses on the development and control of contracts more or less complex, is perhaps not the best possible family policy...