It is possible to build a corporation staffed entirely by Homo economicus. The gains from cooperation and division of labor are so vast that large companies can pay more than small businesses and then use a series of institutionalized carrots and sticks—including expensive monitoring and enforcement mechanisms—to motivate self-serving employees to act in ways the company desires. But this approach (sometimes called transactional leadership)42 has its limits. Self-interested employees are Glauconians, far more interested in looking good and getting promoted than in helping the company.43 In
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