>>14798
>Working hard, and playing by the rules only works if everyone is playing by the rules.
Incorrect. Game Theory shows that prisoner's dilemmas only occur for single interactions between actors with no capacity to communicate. Long-term interactions advantage cooperative behavior over cheating.
>People playing games can get ahead by cheating.
Only when their cheating is generally not detected, or considered to be legitimate. When Cartman takes out your knees and scores a point in basketball, only he considers himself a winner. To everybody else, he's a cheating sack of shit and they aren't going to give him anything for it.
>This is why we have referees at sporting events.
Referees are to make the games worth watching. If there were no referees, and if players generally took to cheating, then spectators couldn't expect a proper game with consistent rules. It wouldn't be interesting anymore (unless you just want to watch bloodsport, but then very few people would want to play). Without spectators, there's no money in the game.
Referees are employed voluntarily by the competing firms (teams) to satisfy the consumer demand for a fair game. The players agree to abide by his rulings in advance, as part of the contract of the game. If they didn't, they wouldn't get to play in profitable sporting events.
You can ignore the referee, but then your team won't let you play with them anymore. The leagues could choose not to have referees, but then nobody would want to watch the games. Everybody agrees to the rules voluntarily instead of having them imposed because it's more profitable that way, and the entire system is much more adaptable to changing circumstances than a centrally-imposed order.
To a considerable extent, the whole thing is actually market self-regulation in microcosm.