I wish it were more widely understood that the groups who agitate to have regulations placed on certain industries are often composed of the participants of those industries, not outsiders trying to arbitrarily place shackles on them. Companies want to construct a better game where the optimal choice for them and their competitors is one that doesn't destroy value.
Companies want to construct a better game where the optimal choice for them and their competitors is one that doesn't destroy value.
Didn't you mean to write
Companies want to construct a better game where they get more profitable and doing business is hard for the competitors.
..?
There are several well-known games in which the pareto optima and Nash equilibria are disjoint sets.
The most famous is probably the prisoner's dilemma. Races to the bottom or tragedies of the commons typically have this feature as well.
I proposed calling these inefficient games. More generally, games where the sets of pareto optima and Nash equilibria are distinct (but not disjoint), such as a stag hunt could be called potentially inefficient games.
It seems worthwhile to study (potentially) inefficient games as a class and see what can be discovered about them, but I don't know of any such work (pointers welcome!)