Cleverly done

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The first is simply to let this play out. Over time, certain seed sellers who are selling knowledge will be shown to be lying because the yields on these seeds will be below what is statistically likely given what people know about seeds. In other words, these sellers will develop a bad reputation and people will stop purchasing knowledge from them. Whether or not this is the best solution to the dishonesty problem depends on how long it takes for this information to be revealed — and, of course, that length of time is endogenous since it depends on the chosen behavior of the dishonest people.

I understand the simplification you made here, yet I tend to disagree given the fact that our world relies on more than just seed selling and seed buying. This dishonest seller might exit the business, but with enough knowledge about capitalism, might already develop three alternative businesses that will allow him to make immense profits. Yes, he will be charged with lying by some Commission, but in order to score a win, he has to lose something.

Great piece, as always!

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