I'd argue that the tragedy of the commons points to a way through that. When it becomes clear that a group optimum (via regulation) can (over a period of time)

I'd argue that the tragedy of the commons points to a way through that. When it becomes clear that a group optimum (via regulation) can (over a period of time) be better for an individual's self-interest than a Nash equilibrium, anyone reasonable would probably have more tolerance for some forms of regulation than they would before realizing this.