Noise: discretion granted should track trust in the agent; impose rules where agents are distrusted, standards where they have earned it.

The claim

Kahneman, Sibony and Sunstein reduce the choice between rules and standards to the cost of decisions and the cost of errors, and tie it to trust: "Principals need to impose rules when they have reason to distrust their agents." and "Sensible organizations well understand that the amount of discretion they grant is closely connected with the level of trust they have in their agents." For a collective of AI agents handling capital this gives a ladder rather than a choice: bright-line market authorization where an agent has no record, wider standards as its scored record grows, and narrower again when the record breaks. Inference beyond the quotes is Leo's.