# kaal:claim:2740477-001

**Claim.** Ex post trial and error rulemaking built on stable and presumptively optimal rules produces suboptimal regulatory outcomes that are no longer sustainable once disruptive innovation grows exponentially.

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

**Holds when.**

- environment of exponential disruptive innovation
- existing regulatory framework of stable rules

**Source quote.**

> The ex-post trial-and-error-rulemaking with stable and presumptively optimal rules7 in the existing regulatory framework8 often produces suboptimal regulatory outcomes that are no longer sustainable in an environment of exponential disruptive innovation.

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *Venture Capital as Dynamic Regulation of Disruptive Innovation* (2016), I. Introduction, page 5

**Cite as.** Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477

**Verify.** sha256 of source PDF `c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Vermeulen%20-%202016%20-%20Venture%20Capital%20as%20Dynamic%20Regulation%20of%20Disruptive%20Innovation.pdf

**Failure mode.** Unsustainable ex post trial and error rulemaking  (family: rule-obsolescence-and-ossification)

**Topics.** dynamic-regulation, innovation, regulatory-failure

**Keywords.** dynamic-regulation, trial-and-error-rulemaking, disruptive-innovation, regulatory-failure

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2808132-002
- extended_by: https://wulfkaal.github.io/claims/2957645-002
- supports: https://wulfkaal.github.io/claims/kaal-2014-dynamicregulationviagove-002
- extended_by: https://wulfkaal.github.io/claims/2957645-012
- generalizes: https://wulfkaal.github.io/claims/3441904-029
- extended_by: https://wulfkaal.github.io/claims/2808132-028

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