# kaal:claim:2267560-005

**Claim.** Rulemaking conducted under conditions of incomplete information and bounded rationality produces suboptimal outcomes that require costly rule revisions, retractions, and additional rulemaking.

**Type.** failure  **Support.** argued

**Holds when.**

- information is systematically incomplete
- actors are boundedly rational

**Source quote.**

> Rulemaking under conditions of incomplete information and bounded rationality can lead to suboptimal outcomes that may require rule revision and/or additional rulemaking.

**From.** Wulf A. Kaal, *Evolution of Law Dynamic Regulation in a New Institutional Economics Framework* (2013), II.1 Dynamic Regulation in the NIE Framework, page 4

**Cite as.** Wulf A. Kaal, Evolution of Law Dynamic Regulation in a New Institutional Economics Framework (2013). SSRN: https://ssrn.com/abstract=2267560

**Verify.** sha256 of source PDF `7ecc9dd1826121a95bf252476cdaa1c8737ad8079e12caf66c4342ffae7af8af` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202013%20-%20Evolution%20of%20Law%20Dynamic%20Regulation%20in%20a%20New%20Institutional%20Economics%20Framework.pdf

**Failure mode.** suboptimal rulemaking under incomplete information  (family: regulatory-lag)

**Topics.** risk-and-incentives

**Keywords.** bounded-rationality, incomplete-information, suboptimal-rules, rule-revision

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2273857-026
- extended_by: https://wulfkaal.github.io/claims/2273857-019
- extended_by: https://wulfkaal.github.io/claims/kaal-2014-dynamicregulationviagove-005

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.