LAW’S PERVERSE INCENTIVES Rule of law given a homogenous and therefore universal

LAW’S PERVERSE INCENTIVES

Rule of law given a homogenous and therefore universal definition of property rights, constitutes a central authority. Just as mathematical operations constitute a central authority. The question is whether the central authority can be reduced to calculations rather than judgments. Humans must make judgements. If we constitute a sufficient rule of law, they only need determine the truth or falsehood of human testimony.

Incentives: Restitution plus costs, via truth telling. Triple damages plus costs for deception. Truth telling matters. Right now lying does not increase risk. The law is currently constructed to provide perverse incentives.

No immunity in the chain of command. All employees personally insured, and personally accountable. Ten times damages for immoral (illegal) directives. No limit of liability.

We all err. We need not lie.