Let’s agree that we want a federal government agency to have the power to make strong decisions. Let’s agree that this agency is the US Food and Drug Administration. We now have a choice to make.
In a world where resources are scarce, knowledge is dispersed and tacit, which of the two options would a priori be expected to deliver better outcomes in terms of drug and food safety and costs? Of course in the US we follow 1 and folks who mention 2 as a possibility are told they must want a horrible America. Can you write down a simple model of each and articulate conditions for when you’d choose 1 over 2 or vice versa?