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Comment by abandonliberty

Yes!

This is the multi-polar (or Moloch) problem, where (ruthless) individual rationality leads to collective ruin.

Unless the system makes it unprofitable, ruthlessness will always out-perform good behavior. Players who make suboptimal (ethical) decisions will lose over time. Corruption will outperform unless the cost of that corruption outweighs the benefit of it. The root cause isn't a moral failing of the players.

If incentives are aligned so that the winnginest behavior is also the most desirable, it doesn't matter if there are defective or unscrupulous players. We can harness selfish ambition for the collective good.

E.g. CEO compensation and behavior differences between Japan/USA, Potlatch (wealth redistribution) festivals among the Pacific Northwest indigenous.

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