Nassim Taleb is Welcome
April 17, 2016
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Mr. Taleb, welcome to the dark side.
I’d be interesting in his ideas about how to deal with the agency problem and rent-seeking. The straight-forward way of eliminating the agency problem should be obvious; although I don’t know if he wants to go there. As I’ve written a lot I’m also skeptical of the amount of skin that actual kings have in the game. Many, if not most, ended up not bothering.
As for rent seeking, the problem is quite intractable. As far as my knowledge of history tells me, rent-seeking is only reduced when a war (this includes civil wars, revolutions, coups) happens and the central authority does the necessary reforms to reduce sinecures and put all resources where they’re needed. Of course as a by-product you get a strengthened central government which tends not to be a good thing.