The question “why do companies do something seemingly unprofitable” is in my opinion worth asking.
The answers seem to be one of:
it actually is profitable, because...
a principal-agent problem, the people doing the thing are not aligned with the company (and the company will not replace them, because...)
Both seem likely, I wish I could figure out which one is true (possibly both).
The question “why do companies do something seemingly unprofitable” is in my opinion worth asking.
The answers seem to be one of:
it actually is profitable, because...
a principal-agent problem, the people doing the thing are not aligned with the company (and the company will not replace them, because...)
Both seem likely, I wish I could figure out which one is true (possibly both).