Beware of the person who gives advice, telling you that a certain action on your part is “good for you” while it is also good for him, while the harm to you doesn’t directly affect him.
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Laws come and go; ethics stay.
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No person in a transaction should have certainty about the outcome while the other one has uncertainty.
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The more confined our ethics, the less abstract, the better it works.
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Society doesn’t evolve by consensus, voting, majority, committees, verbose meetings, academic conferences, tea and cucumber sandwiches, or polling; only a few people suffice to disproportionately move the needle. All one needs is an asymmetric rule somewhere—and someone with soul in the game. And asymmetry is present in about everything.
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The underlying structure of reality matters much more than the participants, something policymakers fail to understand.
Under the right market structure, a collection of idiots produces a well-functioning market.
The researchers Dhananjay Gode and Shyam Sunder came to a surprising result in 1993. You populate markets with zero intelligence agents, that is buying and selling randomly, under some structure such that a proper auction process matches bids and offers in a regular way. And guess what? We get the same allocative efficiency as if market participants were intelligent.
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Leave people alone under a good structure and they will take care of things.
Source: Skin in the Game: Hidden Asymmetries in Daily Life (2018) by Nassim Nicholas Taleb.
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