One trick to change a system to default-converging: change the liability for what were previously externalities.
- One trick to change a system to default-converging: change the liability for what were previously externalities.
- Make it so the entities making decisions now own the liability of the long-range impact of those decisions.
- Now, every player has an incentive to solve the problem, intrinsically.
- Even without much coordination, the result still converges.
- You could argue that all incentives problems ultimately boil down to significant externalities of an action not being owned by the decider.