> But yet we do prevent that. Regulation is about optimizing a large basket of outcomes.
Or, looked at a different way, regulation is about internalizing externalities -- often including present internalization of expected future externalities -- in order to enable decisions made based on optimizing the utilities of the individual participants to be more in line with optimizing global outcomes.
Or, looked at a different way, regulation is about internalizing externalities -- often including present internalization of expected future externalities -- in order to enable decisions made based on optimizing the utilities of the individual participants to be more in line with optimizing global outcomes.