The “winner takes all” dynamic of compensation

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Commenting on the article “Why do investment bankers get paid so much?“, David Sucher (author of City Comforts: How to Build an Urban Village) writes

It seems to me that the best answer to such bizarre disparities of compensation is the “winner takes all” dynamic (you see it with lawyers all the time) is that the marginal cost of going with the “best reputation” is very low. ($150/hr for an attorney versus $500 is trivial when the issue is worth tens of millions) and in CYA terms, well-worth it, especially if one loses…”Well we lost but we hired the very best attorneys.”

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