I’m interested in information about applying the ideas from Radical Markets within an enterprise. Please post case studies, articles, ideas, and insights in this thread.
One basic design that I’m interested in has the following elements:
- All space and equipment are up for auction using self assessed tax.
- Free enterprise like system where business units form freely and contract amongst each other.
- Funding for new units comes from kickstarter system that forms new contracts and gives lead time for reconfiguration
- Base salary paid to employees with bonuses paid out of whatever is left after servicing contracts from other units
- Workers can bid to take over another workers job for less compensation. If they pass an interview then the incumbent is allowed to accept the lower offer or be replaced. Not accepting positions you bid low for can be bases for fines or dismissal.
I’m interested in ideas about how to handle #3. It would be interesting if workers earned tokens and cash for work with a market determining how much they earn. Those with more tokens influence which units get funding more than others. There could also be a guaranteed income of tokens to every worker.
Here are a couple articles about markets within firms…
We are biased toward the democratic/republican side of the spectrum. That’s what we’re used to from civics classes. But the truth is that startups and founders lean toward the dictatorial side because that structure works better for startups. It is more tyrant than mob because it should be. In some sense, startups can’t be democracies because none are. None are because it doesn’t work. If you try to submit everything to voting processes when you’re trying to do something new, you end up with bad, lowest common denominator type results. — Peter Thiel, Girard in Silicon Valley
Every decision made by a tyrant or mob could have been made by a market. It is crazy the extent to which markets are overlooked in this regard.