Re: Moral Hazard problem in a small business
Have the OOs figured the net effect of bribes+better loads into their earnings? Does that make them better paid than the industry average?
If you change the load designations so that they don't get the most profitable loads, will they still earn enough to stay with you? Or will you risk them leaving for something better?
If your own trucks are more profitable than the OOs, why are you looking to increase the number of OOs? Are they profitable enough to generate cash flow to help you increase your own fleet?
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