Dagon comments on Crazy Ideas Thread - Less Wrong Discussion
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Hmm. I don't think that works (or maybe you're just describing capitalism). If individuals have control over money, you can't have a societal design that contradicts their spending choices.
Capitalism allows unlimited private property with all the consequences for concentration of capital. If you don't want that you have to let go of something. Approaches that come to mind (and have been suggested) are
Basically I'm suggesting very general contracts that effectively change the linear reward effect you mention first to a consistent sub-linear one.