I agree with this—Gunnar’s real estate developer example is a case-in-point. Increasing marginal returns on investment are a sufficient condition, not a necessary one.
It does seem like maziness occurs to greater or lesser extent in different industries, and I’d guess that extent-to-which-industries-are-bottlenecked-on-Schelling/stag-hunt-style-coordination is the main predictor of that. On the other hand, coordination bottlenecks are often tough to see from the outside, so I’d really like a more-easily-testable criterion which predicts when coordination bottlenecks are likely to dominate.
I agree with this—Gunnar’s real estate developer example is a case-in-point. Increasing marginal returns on investment are a sufficient condition, not a necessary one.
It does seem like maziness occurs to greater or lesser extent in different industries, and I’d guess that extent-to-which-industries-are-bottlenecked-on-Schelling/stag-hunt-style-coordination is the main predictor of that. On the other hand, coordination bottlenecks are often tough to see from the outside, so I’d really like a more-easily-testable criterion which predicts when coordination bottlenecks are likely to dominate.