That sounds like an evolution-style search, and he ought to be more careful, evolution only optimizes for the utility function - in this case, the ability to trap and hold "customers".

I would categorize that among the pre-rational systems of government - alongside representative democracy, kings, constitutions, etc. A set of rules or a single decider to do the thinking for a species who can't think straight on their own.

I was more interested in what a rationalist government would be like.