Conjecture

Strong rules protect markets that already exist; creating a new one needs rules that someone can reinterpret. Hidalgo, following Yuen Yuen Ang, credits China's first research spinouts to an official, Zhao Qichu, who knew how to bend the rules. A decision market can make that flexibility a mechanism instead of a lucky official: a rule changes when a priced proposal says the change pays, with no sympathetic gatekeeper needed. The cost is that rules which bend easily also bend toward extraction, so the flexibility needs bounds.

Institutional design