Efficiency, Compliance, and the 4-Stap PAC Model

This article will discuss the differences between a Super PAC which is structured in an economically efficient way and one which is structured in a legally compliant way.

David Friedman likes to say that <a href="http://www.reddit.com/r/Libertarian/comments/2tzpg5/conversation_with_david_friedman/co3tyk7">the best form of government is competitive dictatorship. Christians and political scientists often like to say that <a href="https://en.wikipedia.org/w/index.php?title=Benevolent_dictatorship&oldid=648623211">the best form of government is a benevolent dictator. What these views have in common is the idea that some people, or God, know how best to behave. the thing is that very hierarchical systems are very inefficient in some ways, but very efficient in other ways.

most efficient is a unified structure, but this is illegal. A 2-organization system is both the next most efficient but it is legal hot water. While it is legal, it would result in predictable lawsuits. Next most effecient is 3 then 4, however, 4 is the minimum so that we are clearly behaving legally

more firms and political regulation doesn't eliminate coordination, it only hides it and makes it less efficient - which is a bad thing for voters as well as politicians and political consultants, not a good thing, by the way - super pac vendors have never been independant of the super pacs themselves and they never will be. Vendors are hired both for business reasons and also due to pre-existing social relationships. What are the driving forces behind pacs? Donors, campaigns, and vendors. These groups are not independant. Neither do they have conflicts of interest. They have coincidence of interest.

What if the President of a PAC knew how to make a website? If he made a website for his own PAC would this be illegal/immoral? No! I would be economically efficient, though, because if he hired an outside firm to do the same work they would charge more money, ceteris paribus, due to http://www.afterecon.com/economics-and-finance/newtowns-first-law-behavioral-economics/ and change, transaction, and communication costs

communication costs are minimized when i am talking to myself

---https://en.wikipedia.org/wiki/Endowment_effect endowment effect is not a bias: it is just that the item was always valued more than the market price