Rules have always been essential to sports, society and the economy. Regulation is the process of using rules. As with any process, a focus on efficiency pays off.
Big-time tennis nowadays settles disputed line calls with a tool called Hawk-Eye. In 10 seconds, the system’s computer reconstructs the ball’s flight from sets of camera data and shows the line and landing spot on the big screen. Fans cheer for the gee whiz verdict and tennis resumes.
In the old days, a close line call was the start of John McEnroe’s barking infamies at the chair umpire in three-minute-long tirades. Remember?
The McEnroe model still reigns in the regulatory world. In stark contrast, efficiency depends on Hawk-Eye ideas.