Comment Re:And in totally unrelated news.... (Score 1) 383
If you don't play the game, the mutual funds won't like your stock and your stock, potentially affecting the share price negatively. Then the board gets all pissy and you don't get as big of bonus. So you play the game. You didn't understand that?
Situations start when there are multiple players in the market and one can obtain acute, short-term benefit by causing more diffuse, long-term harm - unless all players participate in the harmful action, they will suffer more with neither short- nor long-term gains. The efficiency that using economics as a model in this case brings merely ensures that this harm accumulates as quickly as possible.