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Basic game theory: you should always defect, because you’re always better off. Yet the ideal outcome happens when nobody defects. This is why the states should
by mikeash 8y ago
Basic game theory: you should always defect, because you’re always better off. Yet the ideal outcome happens when nobody defects.
This is why the states should agree (or the Feds somehow impose restrictions) not to make these sorts of deals.
- refurb 8y agoSo what’s the incentive for governments to become more efficient, need less tax money and attract more business? I like the fact that states can choose to compete for companies.
- mikeash 8y agoI’m not proposing to ban lower taxes, just company-specific deals like these. A state wants to have a more friendly business environment to attract companies? Great! Just don’t negotiate tax breaks for a single factory.