This behavior makes sense if he's assuming he's getting reliable information: it's better for practices that result in better outcomes to get copied, and for places with higher economic growth rates to get more resources. When he thinks things are going poorly in some region of the kingdom (in a long-term way, not as a temporary crisis), he gives the vassal fewer resources, contracts the region controlled by the vassal, encourages others not to copy the practices of that region, possibly replaces the vassal, and so on. When he thinks things are going well in some region of the kingdom, he gives the vassal more resources, expands the region controlled by the vassal, encourages others to copy the practices of that region, and so on. He is quite gullible, so he usually believes these reports, although not if they're too outlandish. These reports detail how things are going in these different regions, including particular events, and an overall summary of how well things are going. The king gets reports from different regions of the kingdom (managed by different vassals). Imagine a kingdom ruled by a gullible king. People often want to suppress criticism but less often want to suppress praise in general, they hold criticism to a higher standard than praise. People often avoid looking at horrible things clearly.People often think their project has an unrealistically high chance of succeeding.
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