Inadequate Equilibria

Inadequate Equilibria explores why smart, well-intentioned systems—markets, institutions, academic fields—often fail to solve problems that seem solvable. Yudkowsky argues that many apparent inefficiencies persist because of coordination failures, information asymmetries, and misaligned incentives rather than genuine impossibility.

The work is structured around concrete examples: why aren't there better ways to treat akathisia? Why do universities seem stuck in outdated practices? Why do financial markets miss obvious opportunities? Yudkowsky contends that recognizing these inadequate equilibria is the first step toward either exploiting them for personal gain or working to fix them.

The book combines game theory, economics, and rationalist philosophy to argue that individuals with better models of the world can sometimes identify where institutions are failing and act accordingly. It has become influential in effective altruism and rationalist communities as a framework for thinking about systemic change and personal agency.