Science and higher education are areas in which costs can be huge and results are not obvious, at least in the foreseeable period, available for reliable calculations. Therefore, decision makers in these areas are often set to formalize success criteria in order to have some kind of guideline for understanding whether controlled processes are developing in the right direction. Nevertheless, the formalization of institutions inevitably leads to adverse selection, and the formal entry barriers they put forward are subject to formal overcoming, which is the essence of the Diogenes Principle proposed by the authors.