John Williams wrote:
> It is obvious that no system is perfect. No matter whether it is a
> centrally controlled system, or a completely decentralized system,
> there will be decisions made by people, and people do make mistakes.
> I'd rather have a fault-tolerant system that tends to evolve toward
> greater efficiency. With central control, the mistakes tend to be
> coordinated and are capable of destabilizing the entire system. With
> a diverse, decentralized system, there will be plenty of mistakes, 
> but they will tend to be uncorrelated and while you may see some
> local failures, most of the system will continue unabated. And as a
> bonus, the decentralized system is effectively a massively parallel
> set of experiments that, through trial and error, can result in
> evolution towards a more efficient system.

I've been following this discussion and something about this argument
was nagging at me, but I wasn't sure what.  Now I think I've figured it
out:  You are assuming everyone is a rational actor.

You argue that diverse decentralized systems work better because
mistakes are uncorrelated and failures are localized.  In a perfect
world, I think you may be correct, but we don't live in a perfect world.

Instead, we are faced with actors who will collude with each other to
manipulate markets, subvert systems, and for the short term gain without
regard to long-term consequences.

Some social contract is necessary to curb these activities and some
level of government regulation can provide that contract.

--[Lance]

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