August 28, 2007

Government Correction

Filed under: Entrepreneurship,Markets in Everything — admin @ 6:49 pm

I love to read the various and amazing ideas entrepreneurs devise, but I can’t help being especially entertained when they create solutions that circumvent government action.

Here are two examples. I plan on collecting more.

Getting caught insurance pointed from Marginal Revolution
A private entrepreneur offers ticket insurance for public transportation as an alternative to actually buying a ticket. In the unlikely circumstance that you are caught, the insurer pays the fine.

A market for public-parking spaces
Innovator SpotScout creates a mobile service that allows individuals to purchase public-parking spaces from each other.

August 27, 2007

How to Not Hire Someone Via Craigslist

Filed under: Adverse Selection,Observations — admin @ 6:28 pm

Guy Kawasaki offers some good and humorous advice for poorly thought-out recruiting advertisements here How to Change the World: How to Not Hire Someone Via Craigslist.

Guy is a bit optimistic on outcomes. These kinds of advertisements end up doing much worse in that they create an adverse selection (I’ve actually seen it happen). Experts willing to slum it might apply. Not likely. And certainly, applicants that are honest about not having the specified qualifications will be overshadowed by those who are very skilled at being deceitful. So, in the end, you end up with individuals that aren’t as skilled as you thought, and you don’t even know it.

There is a bright side. Those type of applicants might actually be well matched to those organizations. In other words, deceitfulness, misrepresentation, and overall fronting might actually be valued characteristics (whether the organization realizes it or not).