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We all know that the Theocratic Nation operates as a group of players acting together for the best of the group. And this imposes a great challenge to our nation: how to deal with moral hazard.

There are two characteristics that differentiate a private good of a public goo😛 rivalry and excludability. Consumption is rival if the consumption by one person makes impossible that other person consumes it as well. And a good is excludable if it is possible to prevent someone to consume it. Your food is an example of a good that is excludable and rival: if you have it in your inventory, nobody else can use it, therefore excludable, and once you consume it, nobody else can consume it, thus rival. A public good is the one which consumption is non-rival and non-excludable, and that would be the case of our Hospital: once installed, everybody can use it and if I use it, you can use it as well.

The challenge we have in our nation is that we make some goods that are private into public. But imperfectly public because of their nature. Many of us own companies abroad. Companies are mainly private goods. We are usually the only ones who have access to our private companies. But here we also have the Holy Pantheon, the Holy Army and its divisions, the deposits of the army and the organizations that run the companies and our welfare. The grand total is almost 30 organizations whose access is given to more than one player.

The access to those organizations comes with great responsibilities, as they should be handled by every single player as well as if they were his, but with consciousness that ultimately he does not own what is in any of them. When I was a bare soldier, I was always happy to receive my supplies, although I didn't know at what extent I was being subsidized on that. When I got to division commander and access to the deposits, I felt a greater responsibility on our consumption of weapons in battles and ranking programs. Once I got access to the companies, I noticed the greater challenges of our welfare system and our production (my next article will be about it) and started to use my own gifts when I had free pass to fight abroad. And I never put a single item for sale in our market without agreeing with somebody else. And now that I am the CDSM of the army, I'm the bad guy that says there will be no weapons distribution, or argues with one of our Field Marshals that he should use Q3 weapons, and not Q4 or Q5. Because only a few of us know how difficult it is to supply our army and how much does it cost to put our army in the battle field. I already mentioned in my last article that producing Q1 weapons for all of us to fight 5 times a day is impossible. Now imagine supplying half our army to fight with Q3 weapons for six days straight.

Unfortunately, this consciousness is not a blessing for us all. Some people behave differently than expected when given access to our organizations, and that is called moral hazard. Once the password is granted, one can use the organizations for some private luxuries: some extra gifts with the free pass, gifts for a free fight, some extra supplies... and maybe more. Of course it is of our interest that our soldiers rank up. But those small luxuries don't always take the factor cost into account, and they end up undermining our economy and our security. Those who have access granted to our organizations must have a complete understanding that this access comes with greater responsibilities and not for their own convenience. They must be the first ones to understand the difference of public and private. And the first ones to say no to use our organizations for private conveniences.