QuoteOriginally posted by: Traden4AlphaI was envisioning something a good deal simpler (e.g., a tax of the portfolio dot-product or a tax penalty/credit for spacing of orders. Successful regulation hinges on the regulated entities being able to predict the incentives/taxes/mandates so they can modulate their behavior. If the regulation mechanism is too complex, it will seem like a capricious series of penalties and windfalls that won't effectively influence the system.Yes! It seems that I boycott my own motto.

QuoteOriginally posted by: exneratunriskQuoteOriginally posted by: Traden4AlphaI was envisioning something a good deal simpler (e.g., a tax of the portfolio dot-product or a tax penalty/credit for spacing of orders. Successful regulation hinges on the regulated entities being able to predict the incentives/taxes/mandates so they can modulate their behavior. If the regulation mechanism is too complex, it will seem like a capricious series of penalties and windfalls that won't effectively influence the system.Yes! It seems that I boycott my own motto.The motto is a good one but sometimes the economic agents do their universal computational best to find ways to abuse simplicity. It is when complexity rises to such an extent that the system self-destructs that we have an opportunity to find a new simpler framework that re-aligns incentives at the root level to produce the outcomes we desire.