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I don't know about illegal, but our local governments should be smarter than falling for that trick to get a massively regressive tax set up. What a scam.
by stusmall 8y ago
I don't know about illegal, but our local governments should be smarter than falling for that trick to get a massively regressive tax set up. What a scam.
- jdmichal 8y agoPrisoner's dilemma. Not bidding is a great decision and probably globally optimal for the players. But once one bid is entered, the rational choice for all other actors is to also bid.
- aidenn0 8y agoAt some point the tax breaks mean that increased revenue will not offset the increased infrastructure costs; at that point bidding is no longer rational.
- jdmichal 8y agoI said it's rational to bid, not to bid until it hurts. Bidding is, in a way, discovering who it would benefit the most to perform an action. Those that will be benefited the most will have the largest margin and therefore will be able to support the highest bids.
- aidenn0 8y agoWhat typically happens in real life is that those that bid the highest have either underestimated the costs or overestimated the benefits.