Lumifer comments on Ways to improve LessWrong - Less Wrong Discussion
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That's one way. Another usual and frequently successful way is to introduce property rights.
It's not another way it's an example of the same way. Property rights are a common agreement. Certain individuals own certain things. If an individual violates that agreement about who owns what, they get punished.
For environmental pollution the system is cap-and-trade.
As far as big pharma goes patents are also a crucial part of the system.