Basketball, Banker's pay, and, Economics? Huh?
John Kay show us why high pay for "stars" makes sense in Basketball, but not necessarily in Banking . ...imagine a world that we think is perfectly just. But then Chamberlain appears, and we all have the opportunity to watch him play. Chamberlain insists that he will only take to the court if everyone puts 25c in a special box marked “for Wilt Chamberlain”. Over a season, a million fans consider 25 cents a small price to pay for this pleasure, and so his box contains a quarter of a million dollars. The fans who put their money in Chamberlain’s box are happier, Chamberlain is richer, and people who are not interested in basketball are in the same position as before. If the distribution before Chamberlain was just, how can you dispute the justice of the distribution after Chamberlain? [...] Perhaps there is some resemblance between the fans who willingly gave their quarters to Chamberlain and the crowds that sell out every Coldplay concert or the enthusiasts, waiting o...