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The Edge in one of its recent "Question" issues ran a piece by Charles Seife on capture, in response to the question "what should we be worried about".

It's a tremendous problem, and not just of government (principle-agent problems in management and business are also rampant). Recommended reading:

http://edge.org/response-detail/23674

And the answer isn't "don't regulate". It's "regulate appropriately and effectively". Just realize that this is an eternal challenge.

NB: Sadly the formatting of the questions and responses is horrible. In particular, navigating the full list by title is all but impossible. I've highlighted the specific essay in question.



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