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Let's say, you have 60 authority and it is stable ("sedition from Nobility" is more or less equal to all the authority gains per turn). Then you build another building, that gives you +0.1 authority. The authority raises by some amount (let's say to 60.5, I don't know exactly) and then evens out again, because when it raises, "sedition from Nobility" also raises. So, the building helps you getting slightly higher authority. If you build a lot of those buildings, you can raise your authority by a significant amount.
There is a "retaliate" button at the bottom of the screen. When you click it and right click enemy neighbouring region, your army is supposed to go there, attack the enemy and come back, without capturing the region. Although, I'm not sure if it always work.
You will never suprass it completely. "Sedition from nobility" penalty is like a rubber band, to prevent you from getting very high authority. Every building, that gives +0.1 authority, stretches that rubber band more, giving you slightly higher authority score, but it will always remain.
Edit: If you build a lot of those buildings, you can stretch that band pretty far, however.
Frankly I never noticed any penalties.
In Empires if you built enough culture buildings, you were pretty bullet proof too. I wonder if I have stumbled upon something similar in this game.
Don't ask how I did it, I just played the game by ear.
I was playing Aragon on the balanced setting.
Farming, Stewardship, Religious and Military building trees all have one, so that's eventually something on the order of +0.4 per territory. As long as you are not stupidly over your gov cap your golden.
To get around the sedition penalty generally you want the bonus event buildings rather than the income ones - with a couple of the forts that boost the authority event frequency it's quite possible to trigger the 'impressive fortification' event every turn for a point or two outside of the penalised income.
Probably the fortifications. You can get the impressive forts and good stewardship bonus events trigger almost every turn in every region if you build the walls high enough.