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Why can't we have a government-funded system that pays out to any whistle-blower some proportional amount of money (proportional to the damages they prevent)?

This would align the incentive system very quickly!



For good actors. Brings to mind the Cobra Effect:

https://en.wikipedia.org/wiki/Cobra_effect


How could the cobra effect get into play though?

some CEO arranges for some extremely damaging behavior, then tells on himself?




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