Friedberg argues decentralized funding networks suffer from adverse selection where storytellers win over qualified candidates.
“The problem with decentralized networks is often you see adverse selection. You see this in, like, the insurance industry.”
Friedberg argues salaried employees avoid failure to keep jobs, making it hard to create a culture of creative destruction.
“Most people in most enterprises that aren't owner operators don't want to fail. They want to keep their job. They want to move up the ladder by being repeatedly successful.”