Bribery

Often ignored in mainstream economics, the concept of bribery is central to human systems: Given the chance, it is often easier to pay a certain agent to look the other way than to follow the rules. The enforcer of the rules is then neutralized. This principle/agent problem can be seen as a form of arbitrage.

Source:
Shane Parrish’s Farnam Street Mental Model Guide

2018-09-24T06:30:27+00:00