# kaal:claim:2740477-032

**Claim.** The existing framework for optimal rules is self reinforcing: it perpetuates rulemaking processes that produce more optimal rules requiring costly revision, updating, and revocation, so suboptimal rules and suboptimal processes reproduce each other.

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

**Source quote.**

> The existing regulatory framework for optimal rules reinforces rulemaking processes that perpetuate optimal rules, necessitating costly rule revision, updating, and revocation.

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *Venture Capital as Dynamic Regulation of Disruptive Innovation* (2016), V. Dynamic Regulation as a Regulatory Supplement, page 25

**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.** Self reinforcing suboptimal rulemaking loop  (family: rule-obsolescence-and-ossification)

**Topics.** institutional-design, regulatory-failure

**Keywords.** feedback-loop, stable-rules, institutional-reinforcement, regulatory-failure

**Related claims.**

- restates: https://wulfkaal.github.io/claims/kaal-2014-dynamicregulationviagove-013
- extends: https://wulfkaal.github.io/claims/2267560-010
- restated_by: https://wulfkaal.github.io/claims/2831040-036
- restates: https://wulfkaal.github.io/claims/2267560-009
- restates: https://wulfkaal.github.io/claims/2267560-011

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