| ▲ | recursive 7 hours ago | |
From my naive point of view, it's not clear from first principles why they must. | ||
| ▲ | philipov 7 hours ago | parent [-] | |
It's a version of the principal-agent problem, with the added wrinkle that principals have low barriers to exit. Both the management and investors share the incentive structure of a con artist. | ||