Investor capital disciplines only failures investors can see and price, so it misses profitable behaviour that harms users or others.

groundsCoordination, Good and Bad

That said, decision markets can only solve some problems; in particular, they cannot tell us what variables we should be optimizing for in the first place.

groundsCoordination, Good and Bad

In all of the above cases, we see a group of people coming together and cooperating with each other, but to the great detriment of some group that is outside the circle of coordination, and thus to the net detriment of the world as a whole.

backsOf Swarms and Sand Gods, Séb Krier

The Goodharting can still go one layer up, as we are seeing with human institutions that decay over time and stop doing what they are supposed to do.

groundsCoordination, Good and Bad

It's not an individual defecting against the group, it's a group defecting against a broader group, often the world as a whole.