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RE: Things move a little slower in formal (academic) economics research

in #economics7 years ago

I absolutely want the intention of the platform to succeed: and while perfection is a noble goal, "good enough" is the realistic goal that gets stuff done.

I think we see the same issue. Crony capitalism is the gain of power and rewards simply because an entity holds power and rewards, not because of any inherent value of their actions. (Which, by the way, is not something any economist supports. It's great for those who get the rewards, but terrible for the health of economic system as a whole). If you think about the class of posts you just described...that's essentially crony capitalism by the definition given above.

Sadly, it will always occur in any system. The question is not how to shut that down, it's how to prevent posts from being lost in the stream because they are not part of the "in-group". The limited voting power, reputation, and steem power all should be sufficient to do so. I'm very curious as to why its not. It speaks to an incentive mis-match: is the allocation within the system off somehow? Trying to calibrate a triple variable based on what people value can be...tricky. (And it is impossible to get perfect)

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The way I see it, there's one major difference between crony capitalism and the steemit rewards system.

That is ... In crony capitalism, more and more of the wealth continues to trickle up (or be sucked up), inexorably.

On Steemit, I don't think that will happen, and we Steemers might even be able to prevent that from happening. I for one will do my best to work toward that end.

That would be "good enough."

I had thought steemit would be more immune to cronyism initially, but the GINI coefficients on wealth distribution worry me. As does the incentive to vote on already high powered users (perhaps there should be a logarithmic function in place to force some dispersion? Though I believe that's already in place with reputation, so probably not...).

Given that the reward mechanism in steemit is transparent, the issue should be easier to solve than in the outside world.

Even though I have no idea what a "logarithmic function" is, the idea of "forcing some dispersion" might be worth looking into by the powers-that-be.

I believe witnesses and whales have strong, maybe influential voices in the Steemit ecosystem, so if you (or, less likely, if I) ever rise to that level, we can keep it in mind and work to build or sustain an equitable system.

Sorry, a logarithmic function is just a log function.
For example, in a base-10 log function: log(10)=1; log(100)=2; log(1000)=3 (etc). It's a common rescaling technique makes the difference between 10 and 1000 "smaller".

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