The Entitlement Paradox

Abstract

Islands such as the Galapagos have been incubators for the way species evolve. Many have written on the competitive phase of the evolutionary process. Species adapt to perfect their strategic advantage, through natural selection or “survival of the fittest”. However, these islands illustrate other evolutionary strategies: “survival of the first” or “survival of the few”. Imagine the first lucky seed, birds, turtles or goats that found or were abandoned on these paradises. With plenty to eat and few or no predators, the population would explode quickly. Evolutionary math suggest that these strategies are filled with rapid expansion of populations and a race to become the dominate species of this new territory 1. Competitive pressure to perfect the niche strategy would ensue. Competition does not always result in a better and stronger species. Often these overcrowded populations can go into boom and bust cycles. The population swings can make a species vulnerable to extinction. If the environment becomes fragile, due to overcrowding, the natural incentives of self-preservation and high pro-creation rates can result in tragic consequences for the species as a whole.

Volume
Vol. 1
Page
31-33
Year
2013
Keywords
Risk Management
Categories
Actuarial Applications and Methodologies
Enterprise Risk Management
Publications
Incentive Compensation: The Critical Blind Spot in ERM Today
Authors
Russell Sears
Formerly on syllabus
Off