Sep 29, 2008
“The bailout, whether it ultimately passes or not, will likely be studied by game theorists for years to come, as there are conflicting and somewhat self-contradictory incentives between no fewer than a half-dozen different parties. Everyone wants the package to pass but nobody wants to vote for it.
Framing the plan properly would probably make it more popular. Anyone who tries to frame the plan risks taking ownership. Even if framed properly, it would probably remain unpopular enough to constitute a political liability. So no parties have an incentive to “spin” the plan as a positive, and it continues to become more unpopular as the default narrative (“Wall Street bailout”) is left unchallenged.
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