But that's the point of the prisoner's dilemma. Individuals who are educated, can make informed decisions, have access to information about the results of their decision will always make a decision that isn't the best decision they can make. What the prisoner's dilemma reveals is that the only way to beat the game is through a coordination mechanism. Nothing else will ever help.
>This is something I think we disagree on: I don't see this as a handicap at all.
Hmm so in the prisoner's dilemma you don't see the prisoners without coordination as handicapped? To me it's obvious. Prisoners with coordination realize the best overall outcome, prisoner's without coordination are never able to realize that outcome. Seems straightforwardly handicapped to me.
>To me, this is a case where the so-called "invisible hand of the market" is the way to go: ensure that consumers have access to the information they need, and let consumers make the best decisions for themselves.
I'm providing you with examples where the invisible hand doesn't work the way we like to pretend. The hand is guided towards overall societal benefit by individually selfish actions. What I'm talking about are cases where individually selfish actions lead the invisible hand to overall societal detriment. And that in those instances we need government as a way to coordinate together so that we may reposition the invisible hand where we desire.
>Leaving things to the market leaves things in a more fluid state, in my opinion.
Fluid isn't necessarily good however. We will persist 'fluidly' with Echo with ads until we get the government to act and then we will exist 'statically' with Echo without ads. I suppose I'm fine with that static-ness.
>Some of the early 20th century government involvements led to humanitarian crises (the Communist revolutions in China and Russia);
You're being a bit funny with 'government involvement' here. Maybe there should be some corollary to Godwin's Law where the first one to compare a government program to Mao loses. Anyhow, I'm not talking about seizing the means of production, I'm talking about regulating existing markets.
>that's not to say that governments necessarily lead to the worst situations, just that sometimes markets are better at things than government involvement.
There's also plenty of instances where government involvement is better than markets. That's the case I'm making - essentially that we need government regulation as a way of reigning back the invisible hand when it goes awry aka smart homes that secretly advertise to you.