I think this is a fun historical example. Ships passing through Denmark needed to pay a tax of 1-2% of the value of their cargo. They self-assessed that value.
The twist that makes it interesting was that the King could choose to purchase any cargo immediately at the reported value. If a ship underreported, they might save on tax, but they risked taking a hefty loss.
I have no idea how effective this was, but it's compelling. I wonder whether great self-regulation might need clever design like that example.
Not quite the opposite, it still outsourced the administrative burden. They avoided the hassle of boarding every ship and inspecting the cargo with a random threat. One could even call it "properly incentivized self-regulation".
Amateur motorsports has a similar concept - often called a "claim rule" or similar - in an attempt to control costs.
Basically, for $x amount, a competitor can buy the winning car (or its engine, or similar). Where $x is the amount the group decides should be a reasonable amount to spend on building a car.
A racer is free to spend more, but if they win too much, somebody will write a check and buy the car.
In theory. In reality, plenty of people have the money to spend $x^2 and risk the loss.
https://en.wikipedia.org/wiki/Sound_Dues
I think this is a fun historical example. Ships passing through Denmark needed to pay a tax of 1-2% of the value of their cargo. They self-assessed that value.
The twist that makes it interesting was that the King could choose to purchase any cargo immediately at the reported value. If a ship underreported, they might save on tax, but they risked taking a hefty loss.
I have no idea how effective this was, but it's compelling. I wonder whether great self-regulation might need clever design like that example.
That's literally the opposite of self-regulation.
Not quite the opposite, it still outsourced the administrative burden. They avoided the hassle of boarding every ship and inspecting the cargo with a random threat. One could even call it "properly incentivized self-regulation".
Amateur motorsports has a similar concept - often called a "claim rule" or similar - in an attempt to control costs.
Basically, for $x amount, a competitor can buy the winning car (or its engine, or similar). Where $x is the amount the group decides should be a reasonable amount to spend on building a car.
A racer is free to spend more, but if they win too much, somebody will write a check and buy the car.
In theory. In reality, plenty of people have the money to spend $x^2 and risk the loss.
Interesting variation on the "I cut you choose" game mechanic!
We're in the "exceptio probat regulam" zone with this example.
Nitpicking, I have the feeling that's self-declaration, not self-regulation.
I love solutions like that. Like if you are splitting food, one person cuts and the other chooses.
sounds like Bernie Sander's modern day "lets just buy 50% of AI companies"
The best I've seen is ESRB ratings on video games.