Comment by estearum

> I don't think any of them are in a position to allow or not allow their competitors to make mistakes.

Of course they are, by your own hypothesis. You believe it makes sense for the other parties to engage in this behavior. If it makes sense, then they will do that reliably, and one entity can just defect and stand above the rest.

> The point that you're not getting here is that the advantage comes from actually being seen to make mistakes

Ah yes, the ol' "I just do retarded shit so people think I'm a genius" trick. Who could possibly doubt the strategic genius or umm... existence... of such a strategy.

> Again you're not getting it.

No, I understand it completely. Obviously regulatory capture only works if it in reality inflicts asymmetric costs on other parties.