> I’d assume most people, particularly landlords and local government would want to avoid that.
This seems like a “prisoner’s dilemma” situation. It’s rational for an individual landlord to evict a delinquent tenant and seek a new one. However, if everyone does this the entire market collapses. It’s better for everyone if the landlord takes a short term haircut to preserve the market.
Since cooperation is expected to break down between individuals, the government must step in to prevent collapse.
This seems like a “prisoner’s dilemma” situation. It’s rational for an individual landlord to evict a delinquent tenant and seek a new one. However, if everyone does this the entire market collapses. It’s better for everyone if the landlord takes a short term haircut to preserve the market.
Since cooperation is expected to break down between individuals, the government must step in to prevent collapse.