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Regulators Quote by Ashlee Vance

“Whereas if they change a rule and something good happens, they don’t even get a reward. So, it’s very asymmetric. It’s then very easy to understand why regulators resist changing the rules. It’s because there’s a big punishment on one side and no reward on the other. How would any rational person…” quote by Ashlee Vance
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““Whereas if they change a rule and something good happens, they don’t even get a reward. So, it’s very asymmetric. It’s then very easy to understand why regulators resist changing the rules. It’s because there’s a big punishment on one side and no reward on the other. How would any rational person behave in such a scenario?””

Ashlee Vance

About This Quote

Source Interview: "The Future of Regulation" (2023) tech podcast

Regulatory asymmetry creates disincentives to change; punishments without rewards deter rational actors from improving systems.

In simple terms: Unequal rules discourage innovation.

Key Takeaway

Design balanced incentives.

Themes

regulation incentives asymmetry behavioral economics

Mood

analytical critical

Type

policy economic

When to use this quote

  • government policy
  • corporate strategy
  • market entry
  • compliance

Key Concepts

public policy risk management innovation

Questions to Reflect On

  • What incentives could motivate regulators?
  • How can stakeholders influence policy balance?
A Different Perspective

Changing rules can be politically costly.

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