tag:blogger.com,1999:blog-1065621989140573374.post3270292983867030107..comments2023-05-27T02:40:36.933-04:00Comments on Risk R-Squared: FDIC Proposes Rule To Pay Bankers MoreMarc Rostonhttp://www.blogger.com/profile/05891121575193072176noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1065621989140573374.post-67219850276027663522011-03-16T20:18:20.105-04:002011-03-16T20:18:20.105-04:00@Anonymous:
Absolutely not! I would, however, s...@Anonymous: <br /><br />Absolutely not! I would, however, say that the potential to sue doctors means they are paid more, on the margin, because of malpractice risk. <br /><br />The more interesting issue, however, is that doctors have may more draws off the distribution to identify poor performance. If I'm a cardiac surgeon, and I perform 100 procedures a year, an outside observer (like a jury!) has some hope of determining bad luck versus no skill versus gross negligence. Therefore, if I am a good surgeon, and I know it, and I have some degree of confidence in the legal system, then I'm not carrying too much downside risk that I cannot control.<br /><br />A bank exec, as we've seen, could be completely incompetent from 2000 to 2007, and made the decision to quit in 2007, living his life out on the beach, versus a (potentially) brilliant bank exec who took over for the incompetent one at the end of 2007, who will look to anyone like a fool because we don't have enough information about his skill.Marc Rostonhttp://www.riskrsquared.comnoreply@blogger.comtag:blogger.com,1999:blog-1065621989140573374.post-20272968885803157272011-03-16T20:02:49.545-04:002011-03-16T20:02:49.545-04:00So, I take it you object to medical doctors being...So, I take it you object to medical doctors being sued because their negligence caused untimely deaths?Anonymousnoreply@blogger.com