I learned from Charlie Munger that incentives generally determine behavior.

I just realized a perfect illustration of this principle: the reluctance to moderation by social networks. Social networks are reluctant to moderation because it goes against what they are maximizing for: user engagement.

Because fake and outrageous content maximizes engagement, and fake and outrageous content is usually what should be moderated out, moderation loses. Only strong regulatory pressure (and perhaps enough social pressure) can stem this tide. And as we have seen recently [early 2025] with Facebook/Meta, when political tides change, there’s a quick reversion to what the incentives dictate.

This highlights the need to play the right game, rather than playing the game right.