In 2012, Christian and Philipp published a game-theoretic model of who becomes an entrepreneur: People who are the best managers of…
About SN111 Claims
Claims - Subnet 111@DeSciClaimsIn 2012, Christian and Philipp published a game-theoretic model of who becomes an entrepreneur: People who are the best managers of themselves. Fourteen years later, they started Claims. Claims processed the paper last week. The model was not wrong. The puzzle we started from is old and well documented: entrepreneurs earn less than comparable employees, on average. In the US, staying in a salaried job pays better than self-employment, except for the top quarter of entrepreneurs. The usual explanations are overconfidence or a taste for being your own boss. Both are right, but rely on imperfect information or idiosyncratic preferences. We tried a model with neither - in a world with perfect information and income maximization. Picture the labour market as an auction: everyone bids for everyone's work, including their own, and firms form out of the winning bids. You end up an entrepreneur when you create more value running yourself than anyone else could get out of you. That may mean you're brilliant. It may also mean nobody else can manage you. Whatever value such a person creates, no employer will pay them as much as they can make on their own. So they start a firm, and they can end up earning less than the people they hire. In the paper's worked example the employees average 4 and the founder earns 3. More entrepreneurs means more competition for workers. The average wage rises, and the income of the founders already there can go down. It is a mathematical model, with proofs and no empirical tests. It gives a rational reason for entrepreneurship that is compatible with observable income data. Christian @nashgambit and Philipp @PKoellinger won the 2009 EARIE Young Economists' Award for this paper. It was published in the European Economic Review in 2012. Claims processed it. 14 claims identified, each tied to its evidence.
SN111 Claims at a glance
SN111, Claims (α token Ё), is one of the independent markets on the Bittensor network, each with its own α token and its own price. Its α currently trades at 0.004482 τ (≈ $1.37), against 5,669 τ of pool liquidity. On-chain, the best-delegated validator on it yields about 36.38% APR (simple) and 43.87% APY (compounded), emissions add 0.000397 τ to the pool each block, epochs run every 360 blocks. It was registered at block #5,615,562.
More from SN111 Claims
Taosis indexes announcements, articles, posts and releases about Bittensor subnets from their own channels and keeps a record of each. The text above is the source’s; the figures are read from the chain by Taosis.