I am glad the article mentions CAFE standards. Government CAFE regulations are the primary reason vehicles like Trucks and SUVs have gotten so much larger in recent years, and almost no one talks about it when these conversations come up. Simply put, CAFE standards were modified to include a vehicle "footprint" measured in square feet in addition to vehicle weight. The larger the footprint, the lower the fuel efficie…
Take a few AI agents, let them each be an archetypical player impacted by regulations (automakers, car buyers, etc), and then have them simulate a market and interactions to see what behaviors arise over time.