Theme: Incentives

  • ONE OF THOSE THINGS THAT I DIDN”T WANT TO UNDERSTAND My work has led me to this

    ONE OF THOSE THINGS THAT I DIDN”T WANT TO UNDERSTAND

    My work has led me to this conclusion:

    1) Humans must acquire – and acquire all sorts of things.

    2) To acquire among others we negotiate.

    3) In negotiation we justify.

    4) We trade signals to to obtain discounts in exchange for status.

    5) Truth (correspondence) about the real world provides a negotiating advantage.

    6) Truth in social matters would disallow discounts obtained in exchange for status (or other opportunity)

    I will try to expand that a bit, but it isn’t any more complicated than that.

    Some people are much better at justifying than others. (verbal acuity)

    Universalism is a form of justification that makes use of cognitive biases: Caldnin’s “weapons of influence” are means by which we justify (steal) in by taking advantage of cognitive biases.

    Our genes are selfish, They need to be. And selfish genes win.Truth can be an advantage or a handicap. Justification can be an advantage or a handicap.

    If you grasp this then it sort of ruins the whole moral nature of christendom. We are not families. If we treat one another as kin then, some families will be destroyed by other families.

    Cooperation on means is mutually beneficial. But, universalism is a deceptive attack on the excellent and true. It is parasitism.

    If that doesn’t ruin your philosophical day, then not a lot will.


    Source date (UTC): 2014-07-20 01:26:00 UTC

  • DECREASES TRUSTWOTHINESS

    http://www.aei-ideas.org/2014/07/whod-a-thunk-it-socialism-is-demoralizing-socially-corrosive-and-promotes-individual-dishonesty-and-cheating/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+aei-ideas%2Fcarpe-diem+%28AEIdeas+%C2%BB+Carpe+Diem%29#mblSOCIALISM DECREASES TRUSTWOTHINESS


    Source date (UTC): 2014-07-19 14:17:00 UTC

  • VERSION OF THE BUFFET RULE : MANAGERS MUST BE OWNERS. I’ve been saying this fore

    http://www.forbes.com/sites/timworstall/2013/03/01/solving-the-principal-agent-problem-apple-insists-that-executives-must-hold-company-stock/APPLE’S VERSION OF THE BUFFET RULE : MANAGERS MUST BE OWNERS.

    I’ve been saying this forever. The data is pretty clearly in favor of it. And attempts to circumvent it fail.

    The value of outside owners is to make sure you’re not privatizing capital in the business. The value of inside owners is to make sure you have the incentives to produce capital not privatize it. Outside non-owners, inside non-owners are I suppose fine for volunteer organizations. But otherwise Taleb’s argument holds: Skin in the game is the only insurance.

    Free riding is everywhere.


    Source date (UTC): 2014-07-18 15:19:00 UTC

  • ARTICLE ON THE CURRENT ECONOMICS OF GAME DEVELOPMENT The world is a lot differen

    http://iveybusinessreview.ca/blogs/lbolukhba2010/2014/07/15/1ups-video-game-studios-keep-dying/GREAT ARTICLE ON THE CURRENT ECONOMICS OF GAME DEVELOPMENT

    The world is a lot different from when I wrote adventure games after work in the 80’s by myself. ๐Ÿ™‚


    Source date (UTC): 2014-07-18 05:02:00 UTC

  • Bindner says: July 16, 2014 at 2:03 pm The further takeaway is that electing a R

    http://taxvox.taxpolicycenter.org/2014/07/16/six-takeaways-cbos-new-long-term-budget-outlook/#comment-241060—“Michael Bindner says:

    July 16, 2014 at 2:03 pm

    The further takeaway is that electing a Republican President and Senate is the only thing that can create near term fiscal disaster. Health and the retirement of the boomers is still a concern โ€“ but both of those are, in my opinion, due to inadequate replacement levels โ€“ a birth dirth.

    The debt percentage is going up, for now, but wonโ€™t hit the record anytime soon. That is not a problem as long as Europe and China stay out of the business of selling their debt as a package or buying ours. The continued uncertainty is likely as much about policy. A strong bipartisan budget agreement will likely change that โ€“ but is unlikely to occur just yet. This also kills the prospect of long term reform being easy (but that is a fantasy anyway). The baseline itself is also fantasy โ€“ as always. Of course, the alternative scenario is just as unlikely. There may not even be a United States in 2039 โ€“ we may unite with Europe, and maybe Latin America and Africa by then (indeed, not uniting by then is probably a bad thing).”—-

    Reply to this comment

    Curt Doolittle says:

    July 16, 2014 at 2:38 pm

    Conservatives value norms, nuclear family, and liberty because they have a Durkheimian view of man: that our cultureโ€™s economic advantage is the product of high trust created only under self sufficiency, and such self trust must be constructed normatively first and institutionally second, only as a consequence of those norms. And all evidence around the world un all cultures at all points in time confirms this belief. We cannot run private corporations or corporeal states independent of family structure and norms. This is the fendamental fallacy if universalism whether capitalist or socialist.

    The conservatives speak in myth and allegory, but the empirical content if those myths is correct, while the empirical content of macro economic theory converted from Marx byKkeynes in economics and the universalism of the classicals in mathematics both fail correspondence with drminstrated human behavior. We are tribal beings and only pseudoscientific westerners divorce morality ; the necessary rules required of any cooperative species โ€“ from the science that purports to mrasure such things. American divisiveness and europesn divisiveness, and add the divisiveness in the world is caused first znd foremost by attempts of states to violate those necessary laws of cooperation: the prevention of free riding is the cause if moral intuitions.

    Reply to this comment

    – See more at:


    Source date (UTC): 2014-07-16 15:00:00 UTC

  • THE WISE, THE WELL MEANING, AND THE FOOLS Wise people discuss ideas Well meaning

    THE WISE, THE WELL MEANING, AND THE FOOLS

    Wise people discuss ideas

    Well meaning people discuss events.

    Fools discuss people.

    Wise people debate incentives

    Well meaning people debate morals

    Fools debate aspirations

    Wise people solve in terms of operations.

    Well meaning solve in terms of logic.

    Fools solve in terms of experiences.

    Wise people consider consequences over decades or centuries.

    Well meaning people consider consequences over months or years.

    Fools consider consequences over moments – if at all.

    Wise people think in terms of distributions.

    Well meaning people think in terms of groups.

    Fools think in terms of ideal types.

    Wise people argue economically.

    Well meaning people argue with historically.

    Fools argue with analogies.

    Wise people contemplate the necessary.

    Well meaning people contemplate the preferential.

    Fools contemplate luxuries.

    Wise people philosophize empirically.

    Well meaning people philosophize rationally.

    Fools philosophize idealistically.

    Wise people judge in terms of scarcity.

    Well meaning people judge in terms of utility.

    Fools judge in terms of envy.

    Wise people desire art

    Well meaning people desire design.

    Fools desire novelty.

    Wise people solve competitively.

    Well meaning people solve consensually.

    Fools solve decisively.

    Wise people trade.

    Well meaning people persuade

    Fools command.

    Curt Doolittle

    The Philosophy of Aristocracy

    The Propertarian Institute

    Kiev Ukraine

    July 2014


    Source date (UTC): 2014-07-14 06:46:00 UTC

  • "Consensus, Intent, Taboo and Sacred" VS "Incentives and Institutions" : Another Inequality.

    CONSENSUS, INTENT, TABOO AND SACRED VS INCENTIVES AND INSTITUTIONS : ANOTHER INEQUALITY (very good piece) [W]e humans are usually much happier once we figure out that “consensus and intent” are possible only for small groups, and beyond that scale we must construct protocols (processes) and incentives (information) via institutions (formal institutions) such that it is unnecessary for individuals to constantly exist in conflict between incentives for self interest and the goals of the organization and the polity. There are certain “taboos and sacredness” that it is possible to instill pedagogically. But the more rational and educated the human the less taboos can be used to restrain him from making exceptions that he can justify by his reason. The lower the intelligence of individuals, the more they rely upon intuition, upon the information that they obtain from others, and upon intuitions of ‘sacred and taboo’. So the more educated the populace, the more complex the division of knowledge and labor, the more necessary are incentives and institutions and the lower value there is to “consensus, intent, sacredness and taboo”. We require formal institutions. The pricing system is our most important formal information system. It tells us everything we need to know about our condition related to that of others, and tells us what we we should be doing to serve others whether we want to do it, or can do it, or not. It is our most important information system. Morality and ethics captured in the law prohibits a spectrum of “free riding” (the violation of the contract for logical participation in cooperation) from the criminal, to the ethical, to the conspiratorial, to the moral. We are left to our own devices to prevent conquest. Army, Religion and Credit are our most common defenses. The failure of the sentimental, lesser mind, is not to grasp this basic spectrum whereby humans are materially unequal in their abilities an there frames of reference, and therefore in their means of action. The lower you are on the scale, the more consensus, intent, taboo, and sacred, and the more you depend upon others for knowledge necessary for action. The higher you are on the scale the more you depend on reason, incentives, justification, institutions and abstract information to make your decisions independently of those who rely upon their peers. This pattern means that the exceptional people are always trying to outwit the less, and therefore, invent new economic means which those below them adopt and later benefit from. We tend to think only in terms of technology and consumption, and not behavior as technology. But rational innovations can easily be adopted by repetition and habituation and from that we develop the sacred and the taboo. As such the rational and scientific solution to the problem of creating commons is, as the british did, privatization of administration of the commons so that institutions and rules and incentives can suffice where consensus, intent, taboo and sacred cannot. The enlightenment error is everywhere. We are not equal. We are not similar, and that is why we form a division of knowledge and labor. We cannot ask each other to operate by the same consensus, intent, taboo and sacredness. Because we unequally make use of peers versus non-peer, abstract, information. The conservatives say this in moral language that is so arational it is impossible to disassemble. But they have made sacred this set of ideas. And that is how they function.

  • “Consensus, Intent, Taboo and Sacred” VS “Incentives and Institutions” : Another Inequality.

    CONSENSUS, INTENT, TABOO AND SACRED VS INCENTIVES AND INSTITUTIONS : ANOTHER INEQUALITY (very good piece) [W]e humans are usually much happier once we figure out that “consensus and intent” are possible only for small groups, and beyond that scale we must construct protocols (processes) and incentives (information) via institutions (formal institutions) such that it is unnecessary for individuals to constantly exist in conflict between incentives for self interest and the goals of the organization and the polity. There are certain “taboos and sacredness” that it is possible to instill pedagogically. But the more rational and educated the human the less taboos can be used to restrain him from making exceptions that he can justify by his reason. The lower the intelligence of individuals, the more they rely upon intuition, upon the information that they obtain from others, and upon intuitions of ‘sacred and taboo’. So the more educated the populace, the more complex the division of knowledge and labor, the more necessary are incentives and institutions and the lower value there is to “consensus, intent, sacredness and taboo”. We require formal institutions. The pricing system is our most important formal information system. It tells us everything we need to know about our condition related to that of others, and tells us what we we should be doing to serve others whether we want to do it, or can do it, or not. It is our most important information system. Morality and ethics captured in the law prohibits a spectrum of “free riding” (the violation of the contract for logical participation in cooperation) from the criminal, to the ethical, to the conspiratorial, to the moral. We are left to our own devices to prevent conquest. Army, Religion and Credit are our most common defenses. The failure of the sentimental, lesser mind, is not to grasp this basic spectrum whereby humans are materially unequal in their abilities an there frames of reference, and therefore in their means of action. The lower you are on the scale, the more consensus, intent, taboo, and sacred, and the more you depend upon others for knowledge necessary for action. The higher you are on the scale the more you depend on reason, incentives, justification, institutions and abstract information to make your decisions independently of those who rely upon their peers. This pattern means that the exceptional people are always trying to outwit the less, and therefore, invent new economic means which those below them adopt and later benefit from. We tend to think only in terms of technology and consumption, and not behavior as technology. But rational innovations can easily be adopted by repetition and habituation and from that we develop the sacred and the taboo. As such the rational and scientific solution to the problem of creating commons is, as the british did, privatization of administration of the commons so that institutions and rules and incentives can suffice where consensus, intent, taboo and sacred cannot. The enlightenment error is everywhere. We are not equal. We are not similar, and that is why we form a division of knowledge and labor. We cannot ask each other to operate by the same consensus, intent, taboo and sacredness. Because we unequally make use of peers versus non-peer, abstract, information. The conservatives say this in moral language that is so arational it is impossible to disassemble. But they have made sacred this set of ideas. And that is how they function.

  • "Consensus, Intent, Taboo and Sacred" VS "Incentives and Institutions" : Another Inequality.

    CONSENSUS, INTENT, TABOO AND SACRED VS INCENTIVES AND INSTITUTIONS : ANOTHER INEQUALITY (very good piece) [W]e humans are usually much happier once we figure out that “consensus and intent” are possible only for small groups, and beyond that scale we must construct protocols (processes) and incentives (information) via institutions (formal institutions) such that it is unnecessary for individuals to constantly exist in conflict between incentives for self interest and the goals of the organization and the polity. There are certain “taboos and sacredness” that it is possible to instill pedagogically. But the more rational and educated the human the less taboos can be used to restrain him from making exceptions that he can justify by his reason. The lower the intelligence of individuals, the more they rely upon intuition, upon the information that they obtain from others, and upon intuitions of ‘sacred and taboo’. So the more educated the populace, the more complex the division of knowledge and labor, the more necessary are incentives and institutions and the lower value there is to “consensus, intent, sacredness and taboo”. We require formal institutions. The pricing system is our most important formal information system. It tells us everything we need to know about our condition related to that of others, and tells us what we we should be doing to serve others whether we want to do it, or can do it, or not. It is our most important information system. Morality and ethics captured in the law prohibits a spectrum of “free riding” (the violation of the contract for logical participation in cooperation) from the criminal, to the ethical, to the conspiratorial, to the moral. We are left to our own devices to prevent conquest. Army, Religion and Credit are our most common defenses. The failure of the sentimental, lesser mind, is not to grasp this basic spectrum whereby humans are materially unequal in their abilities an there frames of reference, and therefore in their means of action. The lower you are on the scale, the more consensus, intent, taboo, and sacred, and the more you depend upon others for knowledge necessary for action. The higher you are on the scale the more you depend on reason, incentives, justification, institutions and abstract information to make your decisions independently of those who rely upon their peers. This pattern means that the exceptional people are always trying to outwit the less, and therefore, invent new economic means which those below them adopt and later benefit from. We tend to think only in terms of technology and consumption, and not behavior as technology. But rational innovations can easily be adopted by repetition and habituation and from that we develop the sacred and the taboo. As such the rational and scientific solution to the problem of creating commons is, as the british did, privatization of administration of the commons so that institutions and rules and incentives can suffice where consensus, intent, taboo and sacred cannot. The enlightenment error is everywhere. We are not equal. We are not similar, and that is why we form a division of knowledge and labor. We cannot ask each other to operate by the same consensus, intent, taboo and sacredness. Because we unequally make use of peers versus non-peer, abstract, information. The conservatives say this in moral language that is so arational it is impossible to disassemble. But they have made sacred this set of ideas. And that is how they function.

  • “Consensus, Intent, Taboo and Sacred” VS “Incentives and Institutions” : Another Inequality.

    CONSENSUS, INTENT, TABOO AND SACRED VS INCENTIVES AND INSTITUTIONS : ANOTHER INEQUALITY (very good piece) [W]e humans are usually much happier once we figure out that “consensus and intent” are possible only for small groups, and beyond that scale we must construct protocols (processes) and incentives (information) via institutions (formal institutions) such that it is unnecessary for individuals to constantly exist in conflict between incentives for self interest and the goals of the organization and the polity. There are certain “taboos and sacredness” that it is possible to instill pedagogically. But the more rational and educated the human the less taboos can be used to restrain him from making exceptions that he can justify by his reason. The lower the intelligence of individuals, the more they rely upon intuition, upon the information that they obtain from others, and upon intuitions of ‘sacred and taboo’. So the more educated the populace, the more complex the division of knowledge and labor, the more necessary are incentives and institutions and the lower value there is to “consensus, intent, sacredness and taboo”. We require formal institutions. The pricing system is our most important formal information system. It tells us everything we need to know about our condition related to that of others, and tells us what we we should be doing to serve others whether we want to do it, or can do it, or not. It is our most important information system. Morality and ethics captured in the law prohibits a spectrum of “free riding” (the violation of the contract for logical participation in cooperation) from the criminal, to the ethical, to the conspiratorial, to the moral. We are left to our own devices to prevent conquest. Army, Religion and Credit are our most common defenses. The failure of the sentimental, lesser mind, is not to grasp this basic spectrum whereby humans are materially unequal in their abilities an there frames of reference, and therefore in their means of action. The lower you are on the scale, the more consensus, intent, taboo, and sacred, and the more you depend upon others for knowledge necessary for action. The higher you are on the scale the more you depend on reason, incentives, justification, institutions and abstract information to make your decisions independently of those who rely upon their peers. This pattern means that the exceptional people are always trying to outwit the less, and therefore, invent new economic means which those below them adopt and later benefit from. We tend to think only in terms of technology and consumption, and not behavior as technology. But rational innovations can easily be adopted by repetition and habituation and from that we develop the sacred and the taboo. As such the rational and scientific solution to the problem of creating commons is, as the british did, privatization of administration of the commons so that institutions and rules and incentives can suffice where consensus, intent, taboo and sacred cannot. The enlightenment error is everywhere. We are not equal. We are not similar, and that is why we form a division of knowledge and labor. We cannot ask each other to operate by the same consensus, intent, taboo and sacredness. Because we unequally make use of peers versus non-peer, abstract, information. The conservatives say this in moral language that is so arational it is impossible to disassemble. But they have made sacred this set of ideas. And that is how they function.