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At the risk of being basic, here's a simple example. Let's say I own a restaurant making chicken sandwiches. I have skin in the game. If I serve bad sandwiches at high prices, I will lose money and then go out of business.
On the other hand, consider the DMV. No one gets promoted or fired based on performance of the DMV. People are required to use their services, and they can't go out of business. No one has any skin in the game.
Chicken sandwich restaurants are generally good. DMV's are generally bad.
As a stupid counterpoint, we had a chicken chain try to move in recently. Super Chix. Good sandwiches at high prices. I think they lost out hard to the existing (and ever-expanding) force of Chik-fil-a.
This isn’t an argument against the general principle, but it is a reminder that there’s more than one way to lose money. Whether or not we eradicate a species has less to do with our stated preferences and more to do with its particular habits.
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Wouldn’t the same be true of a worker’s coop? This seems more like an example of markets providing the right incentives than capitalism. Many group the two together; not trying to nitpick, it’s fine if you want to group them together, just want to make sure I’m clear.
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