A Marketing Scheme for Making Money off Innocent People: A Userâ€™s Manual
AbstractFirms often give away free goods with the product that they sell. Firms often give stock options to their top management and other employees. Mixing these two practicesâ€”giving stock options to consumers who buy the firmâ€™s productâ€”, creates a deadly brew. Large numbers of consumers can be lured into buying this product, giving the entrepreneur huge profits and the consumers a growing profit share. But this is a camouflaged Ponzi that will ultimately crash. By analogy it is argued that the common practice of giving stock options to employees can be a factor behind financial crashes. The aim of the paper is to help create a better regulatory structure.
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Bibliographic InfoPaper provided by eSocialSciences in its series Working Papers with number id:2341.
Date of creation: Dec 2009
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employees; money; marketing; financial; entrepreneur; stock options; financial scams; product bundling; firms; consumers; employees; product; profit share; strategy; law; loans;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-10 (All new papers)
- NEP-MIC-2010-01-10 (Microeconomics)
- NEP-MKT-2010-01-10 (Marketing)
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