timtyler comments on Safety Culture and the Marginal Effect of a Dollar - Less Wrong
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I agree that a multi-agent systems perspective is the most fruitful way of looking at the problem. And I agree that coalitions are far less susceptible to the pathologies that can arise with mono-maniacal goal systems. A coalition of agents is rational in a different, softer way than is a single unified agent. For example, it might split its charitable contributions among charities. Does that weaker kind of rationality mean that coalitions should be denigrated? I think not.
To answer Nancy's question, there is a huge and growing body of knowledge about controlling multi-agent systems. Unfortunately, so far as I know, little of it deals with the scenario in which the agents are busily constructing more agents.
That does happen quite a bit in genetic and memetic algorithms - and artificial life systems.