I’m a bit confused about the edges of the inadequate equilbrium concept you’re interested in.
In particular, do simple cases of negative externalities count? E.g. the econ 101 example of “factory pollutes river”—seems like an instance of (1) and (2) in Eliezer’s taxonomy—depending on whether you’re thinking of the “decision-maker” as (1) the factory owner (who would lose out personally) or (2) the government (who can’t learn the information they need because the pollution is intentionally hidden). But this isn’t what I’d typically think of as a bad Nash equilibrium, because (let’s suppose) the factory owners wouldn’t actually be better off by “cooperating”
I’m a bit confused about the edges of the inadequate equilbrium concept you’re interested in.
In particular, do simple cases of negative externalities count? E.g. the econ 101 example of “factory pollutes river”—seems like an instance of (1) and (2) in Eliezer’s taxonomy—depending on whether you’re thinking of the “decision-maker” as (1) the factory owner (who would lose out personally) or (2) the government (who can’t learn the information they need because the pollution is intentionally hidden). But this isn’t what I’d typically think of as a bad Nash equilibrium, because (let’s suppose) the factory owners wouldn’t actually be better off by “cooperating”