Assuming honest MKR governance, oracle manipulation may be reasonably controlled.
Controlling the manipulation with hourly price delays, median price feed implies majority collusion, maximum oracle price limits, price delays give ample time for global settlement.
inefficient outcomes
incentive failures, inertia or active capture by malicious actors
Federalism has the capability of being both bad and good. It just depends who you ask. On one side the advantages of fedaralism is it creates more effectiveness and makes the government stable. On the other hand federalism is risky it gets expensive, lead to a complex tax system and is slow in responses to crisis.
Mechanism design studies solution concepts for a class of private-information games. Leonid Hurwicz explains that 'in a design problem, the goal function is the main "given", while the mechanism is the unknown. Therefore, the design problem is the "inverse" of traditional economic theory, which is typically devoted to the analysis of the performance of a given mechanism.'[1] So, two distinguishing features of these games are: that a game "designer" chooses the game structure rather than inheriting one that the designer is interested in the game's outcome
Advantages over traditional game theory for token econimics: