Comment by enragedcacti
2 days ago
It's a fine sentiment but there are a dozen different game theory principles that contribute these investments never getting made when left in the hands of the private sector. If you're upset about not reaping any of the benefits of your tax dollars, just buy the S&P 500. Of course you don't want the government investing in bad ideas but that doesn't seem to be your sticking point.
FWIW I don't think the status quo is ideal, the government should be getting more credit for and more value out of research that results in profit for private companies so it can invest in and lessen the tax burden of future research.
Can you please name/educate us on some of those game theories and how they apply? (Please don't just point me to prisoners dilemma on wikipedia unless it lays out how it applies to research funding)
Free rider problems/tragedy of the anticommons - research that isn't directly patent-able would result in a dearth of private investment because there isn't a comparative advantage in researching it
Tragedy of the Commons - Research into monitoring, maintaining, regulating, and improving resources shared by private companies
Positive externalities - Some research will not pencil out without including return on investment that cannot be captured by a company
Negative externalities - Companies won't invest in research to reduce injury to other parties (could fix with regulation also but depending on specifics this may be very difficult to enforce)
awesome, thank you. You've given me some holiday reading at the very least :)