Tag Archives: Law

Why Weakly Enforced Rules?

While some argue that we should change our laws to open our borders, it is more common for pro-immigrant folks to argue for weaker enforcement of anti-immigration laws. They want fewer government agencies to be authorized to help enforcement, fewer resources to go into finding violators, and weaker punishment of violators. Similar things happen regarding prostitution and adultery; many complain about enforcement of such laws, and yet don’t support eliminating them.

The recently celebrated “criminal justice reform” didn’t make fewer things illegal, or substitute more efficient forms of punishment (eg torture, exile) for less efficient prison. It mainly just reduces jail sentence durations. When I probed supporters, they confirmed they didn’t want fewer things illegal or more efficient enforcement.

The policing reforms that many want are not to substitute more cost-effective enforcers such as bounty hunters, or stronger punishments against police misconduct, but to instead just have police do less: pull over fewer drivers, investigate fewer suspects, etc.

When I claim that stronger norm enforcement is a big advantage of legalized blackmail, many people say that’s exactly the problem; they want less enforcement of common norms. For example, Scott Sumner:

Great literature and great films often turn people violating society’s norms into sympathetic characters, especially when they are ground down by “the machine”. I suspect that the almost universal public opposition to legalizing blackmail reflects society’s view (subconscious to be sure) that enforcing these norms (especially for non-criminal activities) requires a “light touch”, and that turning shaming into an highly profitable industry will do more harm than good. It will turn society into a mean, backstabbing culture. The people hurt most will be sensitive good people who made a mistake, not callous gang members who don’t care if others think they are evil.

On the surface, all of these positions seems puzzling to me; if a norm or law isn’t worth enforcing well, why not eliminate it? Some possible explanations:

  1. People like the symbolism of being against things they don’t really want to stop. It is more about wanting to look like the sort of person who doesn’t fully approve of such things.
  2. Having more rules that are only weakly enforced allows the usual systems more ways to arbitrarily punish some folks via selective enforcement. You might like this if you share such system’s tastes re who to arbitrarily punish. Or if you want to signal submission to authorities who want to use such power.
  3. If these things were actually legal and licit, people might sometimes publicly suggest that you are engaging in them. But if they are illicit or illegal, there’s a norm against accusing someone of doing them without substantial evidence. So if you want to discourage others from lightly accusing you of such things, you may want those activities to be officially disapproved, even if you don’t actually want to discourage them.
  4. We mainly want these norms and laws to help us deal with some disliked “criminal class” out there, a class that we don’t actually interact with much. So when we see real cases in our familiar word, they seem like they are not in that class, and thus we don’t want our norms or laws to apply to them. We only want less enforcement for folks in our world.
  5. What else?

Added 26Feb: I clearly didn’t communicate well in this post, as many commenters and this responding post saw me as arguing that all punishment, conditional on being caught and convicted, should either be zero or max extreme (eg death). Yes of course it is often reasonable to use intermediate punishments.

But enforcement also includes a chance of being caught, not just a degree of punishment, and there are issues of the cost-effectiveness of the processes to catch and punish people. There are many who want less punishment if caught, and less chance of catching, for most all offenses, and don’t want more cost effective catching or punishment, for fear that this might lead to more catching or punishing. To me, this seems hard to explain via just thinking that we’ve overestimated the optimal punishment level for some particular offenses.

Added 3Mar: A striking example is how in WWI recruits were supposed to be age 19 or older, but it was easy to lie and get in at younger ages, and most everyone knew of someone who had done this. We tsk tsk about child soldiers elsewhere, but don’t seem much ashamed of our own.

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Checkmate On Blackmail

Often in chess, at least among novices, one player doesn’t know that they’ve been checkmated. When the other player declares “checkmate”, this first player is surprised; that claim contradicts their intuitive impression of the board. So they have to check each of their possible moves, one by one, to see that none allow an escape.

The same thing sometimes happens in analysis of social policy. Many people intuitively want to support policy X, and they usually want to believe that this is due to the good practical consequences of X. But if the policy is simple enough, one may be able iterate through all the possible consequential arguments for X and find that they all fail. Or perhaps more realistically, iterate through hundreds of the most promising actual consequential arguments that have been publicly offered so far, and both find them all wanting, and find that almost all of them are repetitions, suggesting that few new arguments are to be found.

That is, it is sometimes possible with substantial effort to say that policy X has been checkmated, at least in terms of known consequentialist supporting arguments. Yes, many social policy chess boards are big, and so it can take a lot of time and expertise to check all the moves. But sometimes a person has done that checking on policy X, and then frequently encounters others who have not so checked. Many of these others will defend X, basically randomly sampling from the many failed arguments that have been offered so far.

In chess, when someone says “checkmate”, you tend to believe them, even if you have enough doubt that you still check. But in public debates on social policy, few people accept a claim of “checkmate”, as few such debates ever go into enough depth to go through all the possibilities. Typically many people are willing to argue for X, even if they haven’t studied in great detail the many arguments for and against X, and even when they know they are arguing with someone who has studied such detail. Because X just feels right. When such a supporter makes a particular argument, and is then shown how that doesn’t work, they usually just switch to another argument, and then repeat that process until the debate clock runs out. Which feels pretty frustrating to the person who has taken the time to see that X is in fact checkmated.

We need a better social process for together identifying such checkmated policies X. Perhaps a way that a person can claim such a checkmate status, be tested sufficiently thoroughly on that claim, and then win a reward if they are right, and lose a stake if they are wrong. I’d be willing to help to create such a process. Of course we could still keep policies X on our books; we’d just have to admit we don’t have good consequential arguments for them.

As an example, let me offer blackmail. I’ve posted seven times on this blog on the topic, and in one of my posts I review twenty related papers that I’d read. I’ve argued many times with people on the topic, and I consistently hear them repeat the same arguments, which all fail. So I’ll defend the claim that not only don’t we have good strong consequential arguments against blackmail, but that this fact can be clearly demonstrated to smart reasonable people willing to walk through all the previously offered arguments.

To review and clarify, blackmail is a threat that you might gossip about someone on a particular topic, if they don’t do something else you want. The usual context is that you are allowed to gossip or not on this topic, and if you just mention that you know something, they are allowed to offer to compensate you to keep quiet, and you are allowed to accept that offer. You just can’t be the person who makes the first offer. In almost all other cases where you are allowed to do or not do something, at your discretion, you are allowed to make and accept offers that compensate you for one of these choices. And if a deal is legal, it rarely matters who proposes the deal. Blackmail is a puzzling exception to these general rules.

Most ancient societies simply banned salacious gossip against elites, but modern societies have deviated and allowed gossip. People today already have substantial incentives to learn embarrassing secrets about associates, in order to gain social rewards from gossiping about those to others. Most people suffer substantial harm from such gossip; it makes them wary about who they let get close to them, and induces them to conform more to social pressures regarding acceptable behaviors.

For most people, the main effect of allowing blackmail is to mildly increase the incentives to learn embarrassing secrets, and to not behave in ways that result in such secrets. This small effect makes it pretty hard to argue that for gossip incentives the social gains out weigh the losses, but for the slightly stronger blackmail incentives, the losses out weight the gains. However, for elites these incentive increases are far stronger, making elite dislike plausibly the main consequentialist force pushing to keep blackmail illegal.

In a few recent twitter surveys, I found that respondents declared themselves against blackmail at a 3-1 rate, evenly split between consequential and other reasons for this position. However, they said blackmail should be legal in many particular cases I asked about, depending on what exactly you sought in exchange for your keeping someone’s secret. For example, they 12-1 supported getting your own secret kept, 3-2 getting someone to treat you fairly, and 1-1 getting help with child care in a medical crisis.

These survey results are pretty hard to square with consequential justifications, as the consequential harm from blackmail should mainly depend on the secrets being kept, not on the kind of compensation gained by the blackmailer. Which suggests that non-elite opposition to blackmail is mainly because blackmailers look like they have bad motives, not because of social consequences to others. This seems supported by the observation that women who trash each other’s reputations via gossip tend to consciously believe that they are acting helpfully, out of concern for their target.

As examples of weak arguments, Tyler Cowen just offered four. First, he says even if blackmail has good consequences, given current world opinion it would look bad to legalize it. (We should typically not do the right thing if that looks bad?) Second, he says negotiating big important deals can be stressful. (Should most big deals be banned?) Third, it is bad to have social mechanisms (like gossip?) that help enforce common social norms on sex, gender and drugs, as those are mistaken. Fourth, making blackmail illegal somehow makes it easier for your immediate family to blackmail you, and that’s somehow better (both somehows are unexplained).

I’d say the fact that Tyler is pushed to such weak tortured arguments supports my checkmate claim: we don’t have good strong consequential arguments for making gossiper-initiated blackmail offers illegal, relative to making gossip illegal or allowing all offers.

Added 18Feb: Some say a law against negative gossip is unworkable. But note, not only did the Romans manage it, we now have slander/libel laws that do the same thing except we add an extra complexity that the gossip must be false, which makes those laws harder to enforce. We can and do make laws against posting nude pictures of a person who disapproves, or stealing info such as via hidden bugs or hacking into someone’s computer.

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Umpires Shouldn’t Be On Teams

There are many complex issues to consider when choosing between public vs private provision of a good or service. But one issue seems to me to clearly favor the private option: rights. If you want to make rights-enforcing rules that are actually followed, you are better off having courts or regulators enforcing rules on a competitive private industry.

Consider this excellent 2015 AJPS paper:

Many regulatory policies—especially health, safety, and environmental regulations—apply to government agencies as well as private firms. … Unlike profit‐maximizing firms, government agencies face contested, ambiguous missions and are politically constrained from raising revenue to meet regulatory requirements. At the same time, agencies do not face direct competition from other firms, rarely face elimination, and may have sympathetic political allies. Consequently, the regulator’s usual array of enforcement instruments (e.g., fines, fees, and licensure) may be potent enough to alter behavior when the target is a private firm, but less effective when the regulated entity is a government agency. …

The ultimate effect of regulatory policy turns not on the regulator’s carrots and sticks, but rather on the regulated agency’s political costs of compliance with or appeal against the regulator, and the regulator’s political costs of penalizing another government. One implication of this theory is that public agencies are less likely than similarly situated private firms to comply with regulations. Another implication is that regulators are likely to enforce regulations less vigorously against public agencies than against private firms because such enforcement is both less effective and more costly to the regulator. …

We find that public agencies are more likely than private firms to violate the regulatory requirements of the [US] Clean Air Act and the Safe Drinking Water Act. Moreover, we find that regulators are less likely to impose severe punishment for noncompliance on public agencies than on private firms. (more)

See also:

There is evidence … that [public entities] are [better] able to delay or avoid paying fines when penalties are assessed. (more)

Public sector employees experienced a higher incidence rate of work-related injuries and illnesses than their private industry counterparts. (more)

I’ve tried but failed to find stats on public vs private relative rates of abuse, harassment, bribery, embezzlement, nepotism, and test cheating. (Can you find more?) But I’d bet they’d also show government agencies violating such rules at higher rates.

This perspective seems very relevant to criminal justice reform. Our status quo criminal justice system embodies enormous inefficiencies and injustices, but when I propose changes that involve larger roles for private actors, I keep hearing “yes that might be more efficient, but won’t private actors create more rights violations?” But the above analysis suggests that this gets the comparison exactly wrong!

Yes of course, if you compare a public org that has a rule with a private actor to whom no such rules applies, you may get more rule “violations” with the latter. And yes, enforcement of central rules can be expensive and limiting, so sometimes it makes sense to use private competition as a substitute for central rules, and so impose fewer rules on private actors. But once we allow ourselves to choose which rules to impose, private orgs seem just overall better for enforcing rules.

Note that when a government agency directly contracts with a specific private organization, using complex flexible terms and monitoring, as in military procurement, the above theory predicts that this contractor will look much more like an extension of the government agency for the purpose of rule enforcement. Rule enforcement gains come instead from private orgs that compete to be chosen by the public, or that compete to win simple public prizes where public orgs do not have so much discretion over terms that they can pick winners, but get blamed for rights violations of losers.

It is these independent private actors that I seek to recruit to reform criminal justice. We will get more, not less, enforcement of rules that protect rights, when the umpires who enforce rights are less affiliated with the teams who can violate them.

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Can You Outsmart An Economist?

Steven Landsburg’s new book, Can You Outsmart An Economist?, discusses many interesting questions. For example, in this nice and real example, median wages for all workers only rose 3% from 1980-2005, yet they rose 15% or more for each race/sex subgroup. Because the relative group sizes changed:

Taking the book title as a challenge, however, I have to point out the one place where I disagreed with the book. Landsburg says:

In a recent five-year period on the Maryland stretch of I-95, a black motorist was three times as likely as a white motorist to be stopped and searched for drugs. Black motorists were found to be carrying drugs at pretty much exactly the same rate as whites. (A staggeringly high one-third of stopped blacks and the same staggeringly high one-third of stopped whites were caught with drugs in their cars.) This was widely reported in the news media as clear-cut evidence of racial discrimination. … If you believe that people respond to incentives, then you must believe that if blacks were stopped at the same lower rate that whites were, more of them would have carried drugs. …

If [police] were single-mindedly out to maximize arrests, they’d start by focusing their attention on the group that’s most inclined to carry drugs—in this case, blacks. … If blacks are still carrying more drugs than whites, the police shift even more of their focus to blacks, leading the gap to close a bit more. This continues until whites and blacks are carrying drugs in equal proportions. … If you want to maximize deterrence, you’ll concentrate more on stopping whites, because there are more whites in the population to deter, … which would deter more whites from carrying drugs—and then the average white motorist would carry fewer drugs than the average black.

I’m with him until that last sentence. I think he is assuming that each choice to carry drugs or not is chosen independently, that choice is deterred independently via a perceived chance of being stopped, that potential carriers know only the average chance that someone in their groups is stopped, and that police can’t usefully vary the stopping chance within groups.

If a perceived stopping chance could be chosen independently for each individual, then to maximize deterrence overall that chance would be set somewhat differently for each individual, according to their differing details. But the constraint that everyone in a group must share the same perceived stopping chance will prevent this detailed matching, making it a bit harder to deter drug carrying in that group. This is a reason that, all else equal, police motivated by deterrence may try a little less harder to deter larger groups, who are harder to deter, because they have more internal variation.

Landsburg instead argues that you’ll put more effort into deterring the larger group, apparently just because there is a larger overall benefit from deterring a larger group. Yes, of course, deterring a group twice as large could produce twice the deterrent benefit in terms of its effect on the overall drug-carrying crime rate. But that comes at twice the cost in terms of twice as many traffic stops. I don’t see how there is a larger benefit relative to cost from focusing deterrence efforts on larger groups.

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My Poll, Explained

So many have continued to ask me the same questions about my recent twitter poll, that I thought I’d try to put all my answers in one place. This topic isn’t that fundamentally interesting, so most you you may want to skip this post.

Recently, Christine Blasey Ford publicly accused US Supreme Court nominee Brett Kavanaugh of a sexual assault. This accusation will have important political consequences, however it is resolved. Congress and the US public are now put in the position of having to evaluate the believability of this accusation, and thus must consider which clues might indicate if the accusation is correct or incorrect.

Immediately after the accusation, many said that the timing of the accusation seemed to them suspicious, occurring exactly when it would most benefit Democrats seeking to derail any nomination until after the election, when they may control the Senate. And it occurred to me that a Bayesian analysis might illuminate this issue. If T = the actual timing, A = accurate accusation, W = wrong accusation, then how much this timing consideration pushes us toward final beliefs is given by the likelihood ratio p(T|W)/p(T|A). A ratio above one pushes against believing the accusation, while a ratio below one pushes for it.

The term P(T|A) seemed to me the most interesting term, and it occurred to me to ask what people thought about it via a Twitter poll. (If there was continued interest, I could ask another question about the other term.) Twitter polls are much cheaper and easier for me to do than other polls. I’ve done dozens of them so far, and rarely has anyone objected. Such polls only allow four options, and you don’t have many characters to explain your question. So I used those characters mainly to make clear a few key aspects of the accusation’s timing:

Many claimed that my wording was misleading because it didn’t include other relevant info that might support the accusation. Like who else the accuser is said to have told when, and what pressures she is said to have faced when to go public. They didn’t complain about my not including info that might lean the other way, such as low detail on the claimed event and a lack of supporting witnesses. But a short tweet just can’t include much relevant info; I barely had enough characters to explain key accusation timing facts.

It is certainly possible that my respondents suffered from cognitive biases, such as assuming too direct a path between accuser feelings and a final accusation. To answer my poll question well, they should have considered many possible complex paths by which an accuser says something to others, who then tell others people, some of which then chose when to bring pressure back on that accuser to make a public accusation. But that’s just the nature of any poll; respondents may well not think carefully enough before answering.

For the purposes of a Twitter poll, I needed to divide the range from 0% to 100% into four bins.
I had high uncertainty about where poll answers would lie, and for the purpose of Bayes rule it is factors that matter most. So I choose three ranges of roughly a factor of 4 to 5, and a leftover bin encompassing an infinite factor. If anything, my choice was biased against answers in the infinite factor bin.

I really didn’t know which way poll answers would go. If most answers were high fractions, that would tend to support the accusation, while if most answers were low fractions, that would tend to question the accusation. Many accused me of posting the poll in order to deny the accusation, but for that to work I would have needed a good guess on the poll answers. Which I didn’t have.

My personal estimate would be somewhere in the top two ranges, and that plausibly biased me to pick bins toward such estimates.  As two-thirds of my poll answers were in the lowest bin I offered, that suggests that I should have offered an even wider range of factors. Some claimed that I biased the results by not putting more bins above 20%. But that fraction is still below the usual four-bin target fraction of 25% per bin.

It is certainly plausible that my pool of poll respondents are not representative of the larger US or world population. And many called it is irresponsible and unscientific to run an unrepresentative poll, especially if one doesn’t carefully show which wordings matter how via A/B testing. But few complain about the thousands of other Twitter polls run every day, or of my dozens of others. And the obvious easy way to show that my pool or wordings matter is to show different answers with another poll where those vary. Yet almost no one even tried that.

Also, people don’t complain about others asking questions in simple public conversations, even though those can be seen as N=1 examples of unrepresentative polls without A/B testing on wordings. It is hard to see how asking thousands of people the same question via a Twitter poll is less informative than just asking one person that same question.

Many people said it is just rude to ask a poll question that insinuates that rape accusations might be wrong, especially when we’ve just seen someone going through all the pain of making one. They say that doing so is pro-rape and discourages the reporting of real rapes, and that this must have been my goal in making this poll. But consider an analogy with discussing gun control just after a shooting. Some say this is rude then to discuss anything but sympathy for victims, but others say this is exactly a good time to discuss gun control. I say that when we must evaluate a specific rape accusation is exactly a good time to think about what clues might indicate in what direction on whether this is an accurate or wrong accusation.

Others say that it is reasonable to conclude that I’m against their side if I didn’t explicitly signal within my poll text  that I’m on their side. That’s just the sort of signaling game equilibrium we are in. And so they are justified in denouncing me for being on the wrong side. But it seems a quite burdensome standard to hold on polls, which already have too few characters to allow an adequate explanation of a question, and it seems obvious that the vast majority of Twitter polls today are not in fact being held to this standard.

Added 24Sep: I thought the poll interesting enough to ask, relative to its costs to me, but I didn’t intend to give it much weight. It was all the negative comments that made it a bigger deal.

Note that, at least in my Twitter world, we see a big difference in attitudes between vocal folks who tweet and those who merely answer polls. That later “silent majority” is more skeptical of the accusation.

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Radical Markets

In 1997, I got my Ph.D. in social science from Caltech. The topic that drew me into grad school, and much of what I studied, was mechanism and institution design: how to redesign social practices and institutions. Economists and related scholars know a lot about this, much of which is useful for reforming many areas of life. Alas, the world shows little interest in these reforms, and I’ve offered our book The Elephant in the Brain: Hidden Motives in Everyday Life, as a partial explanation: most reforms are designed to give us more of what we say we want, and at some level we know we really want something else. While social design scholars would do better to work more on satisfying hidden motives, there’s still much useful in what they’ve already learned.

Oddly, most people who say they are interested in radical social change don’t study this literature much, and people in this area don’t much consider radical change. Which seems a shame; these tools are a good foundation for such efforts, and the topic of radical change has long attracted wide interest. I’ve tried to apply these tools to consider big change, such as with my futarchy proposal.

I’m pleased to report that two experts in social design have a new book, Radical Markets: Uprooting Capitalism and Democracy for a Just Society:

The book reveals bold new ways to organize markets for the good of everyone. It shows how the emancipatory force of genuinely open, free, and competitive markets can reawaken the dormant nineteenth-century spirit of liberal reform and lead to greater equality, prosperity, and cooperation. … Only by radically expanding the scope of markets can we reduce inequality, restore robust economic growth, and resolve political conflicts. But to do that, we must replace our most sacred institutions with truly free and open competition—Radical Markets shows how.

While I applaud the ambition of the book, and hope to see more like it, the five big proposals of the book vary widely in quality. They put their best feet forward, and it goes downhill from there. Continue reading "Radical Markets" »

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Between Property and Liability

Last October I posted on Eric Posner and Glen Weyl’s proposal to generalize self-assessed property taxes. For many items, such as land and buildings, you’d pay an annual tax that is a standard percentage of your self-set sale-offer price for the item. This would avoid administrative property valuations, discourage people from sitting on stuff they don’t use, and make it much easier to assemble property into large units. Eminent domain would no longer be needed. They have a new book, Radical Markets, coming out in a few weeks, that I will review soon.

Some libertarian types disapprove on the grounds that this weakens property rights. Which it can, relative to a simple absolute property right. But simple property and liability have long been two quite different, and extreme, solutions to legal problems. Neither one is always best. In this post I want to point out that this alternate approach can be used not only to change traditional property to be more like liability, it can also be used to change traditional liability to be more like property. It is an interesting intermediate form between traditional property and liability. One I expect libertarian types to look on more favorably when applied to liability.

Today if someone smashes their car into yours, you can sue them for damages. But even if you convince the court that the event happened and that the party you sued was at fault, the amount of the damages will be set by a court’s judgement. They will mostly look at your demonstrable financial costs, and mostly ignore your value of leisure time, disability, pain, etc. You can’t do much to convince them that you suffer a higher cost from such events than others do.

To apply self-assessment to liability, we’d ask each person to estimate a function that outputs their loss in dollars, and takes as input different scenarios of events that could hurt them. The function would say how much they suffer in each scenario. (The function might interpolate between a set of concrete scenarios which the person rated.) We’d convolve this function with an official distribution over how often such events happen, and a tax rate function, to find each person’s total tax. This is like paying a tax for each property item you hold, but is instead adding up a tax for each possible scenario where you might be hurt.

Then if someone actually hurts you in some event, you could sue for the amount of damages your function declares for that event. Once the court was persuaded that the event happened and that the person you sued was at fault, the court could mostly just believe your estimate of harm, instead of trying to estimate it themselves. In this way the court could cheaply and accurately account for losses of limbs, time, pain, etc. As you’d set the damage levels yourself, this approach makes traditional liability more like property.

Added 15Apr: A reminder: this doesn’t have to produce any net tax revenue. It could just take from those who declare larger than average values of harms done to them, and rebate to those who declare lower than average values.

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Privately Enforced & Punished Crime

I’ve been teaching law & economics for many years now, and have slowly settled on the package legal reforms for which I most strongly want to argue. I have chosen a package that seems big enough to inspire excitement and encompass synergies, and yet small enough to allow a compelling analysis of its net benefits.

My proposal is regarding how to detect, prosecute, and punish criminal law. It is not about non-criminal law, and it is not a proposal to change how we decide what acts are crimes, when to be persuaded by a particular crime accusation, how hard to work to discourage each criminal act, nor how hard to work to catch each criminal act. To start, I hold constant how we do these other things. Continue reading "Privately Enforced & Punished Crime" »

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Exclusion As A Substitute For Norms, Law, & Governance

Hell may not be other people, but worry sure is. That is, what we worry most about is what other people might do to us. People at the office, near our home, at the store, on the street, and even at church.

To reduce our worries, we can rely on norms, law, and governance. That is, to discourage bad behavior, we can encourage stronger informal social rules, we can adopt more formal legal rules, and we can do more with complex governance mechanisms.

In addition, we can rely on a simple and robust ancient solution: exclusion. That is, we can limit who is allowed with the circles we travel. We can use exclusion to limit who lives in our apartment complex, who shows up at the parties we attend, and who works in a cubicle near us.

Now the modern world tends to say that it disapproves of exclusion. The bad ancient world did much gossiping about what types of people could be trusted how, and then it relied a lot on the resulting shared judgements within their norms, law, and governance. We today have instead been trying to expunge such judgments from our formal systems; they are supposed to treat everyone equally without much reference to the groups to which they belong.

In addition, we’ve become more wary of using harsh punishments, like torture, death, or exile.  And we are more wary of using corruptible quick and dirty evaluations within our norms, law, and governance. For example, we have raised our standards for shunning neighbors, pulling over drivers, convicting folks at court, and approving large bold governance changes. And people today seem less willing to help the law via reports and testimony. Oh we may be more willing to apply norms to people we read about on social media; but we apply them less to the people we meet around us.

As a result of these trends, many people perceive that we have on net weakened the power of our systems of norms, law, and governance to constrain bad behavior. In response, I think they’ve naturally increased their reliance on exclusion. They look more carefully at who they allow into their schools, firms, apartments, and nations. And they are less willing to give a marginal person the benefit of the doubt.

Since we don’t want to look like we are excluding on the basis of simple group affiliations, we instead try to rely on a more intuitive and informal aggregation of many weak clues. We try to get a feel for how much we like them or feel comfortable with them overall. But that need not result in more mixing.

For example, colleges that admit people just on GPA and test scores can be more open to lower class students than colleges that require applicants to have adopted the right set of extracurricular actives, and to have hit on the right themes in their essays. Lower class people can find it is easier to get good grades and scores than to track the new fashions in activities and essays.

Similarly, Tyler Cowen makes the point somewhere that when firms had simple and clear rules on dress and behavior, someone with a low class background could more easily pass as high class; they just had to follow the rules. Today, without such simple rules, people rely more on many subtle clues of clothes, conversation topics, travel locations, favorite music and movies, and so on. Someone with a lower class background finds it harder to adopt all these patterns, and so is more obviously outed and rejected as not one of us.

The point seems to apply more generally. The net effect of our today relying less on norms, law, and governance, and avoiding simple group labels in exclusion, is that we rely more on exclusion based on an intuitive feel that someone is like us.

This may be a cause of our increasing class and political polarization, at home and work. Feeling less protected by norms, law, and governance, and shy of using simple group identifiers, we are more and more surrounding ourselves with others who feel comfortably like us. We can tell ourselves that we aren’t excluding Joe or Sue because they are Republicans, or don’t have a college degree. Its just that those sort of people tend to give off dozens of other off-putting signs that they are just not people like us.

We would call it an outrage if society as a whole excluded them explicitly and formally because of a few simple signs. Only ignorant and rude societies do that. But we feel quite comfortable excluding them from our little part of the world based on our just not feeling comfortable with them. Hey, as anyone knows, in our part of the world it is just really important to have the right people.

Consider this another weak argument for relying more on stronger norms, law, and governance. That could let us rely less on exclusion locally. And mix up a bit more.

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Yay Stability Rents

Six years ago I posted on the idea of using combinatorial auctions as a substitute for zoning. Since then, news on how badly zoning has been messing up our economy has only gotten worse. I included the zoning combo auction idea in my book The Age of Em, I’ve continued to think about the idea, and last week I talked about it to several LA-based experts in combinatorial auctions.

I’ve been pondering one key design problem, and the solution I’ve been playing with is similar to a solution that also seems to help with patents. I asked Alex Tabarrok, whose office is next door, if he knew of any general discussion of such things, and he pointed me to a long (110 page) 2016 paper called “Property is another name for monopoly” by Eric Posner and Glen Weyl. (See also this technical paper.) And that turned out to be a relatively general argument for using the specific mechanism that I was considering using in zoning combo auctions, get this, as a new standard kind of property right for most everything! Looking for web discussion, I find a few critical responses, and one excellent 2014 Interfuildity post on the basic idea. In this post I’ll go over the basic idea and some of its issues, including two that Posner and Weyl didn’t consider. Continue reading "Yay Stability Rents" »

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