kaal:claim:3782191-036

Centralization is dangerous in any market because monopolies ruin market efficiency by impairing liquidity, while the most efficient and liquid markets have high transaction rates of many goods moving between many small players.

Source quote, verbatim

In any market, centralization is dangerous. Monopolies ruin the efficiency of a mar- ket—they impair its liquidity.

From

Craig Calcaterra, Wulf A. Kaal, Preface to (2021), Qualities of decentralization: stability, efficiency, versatility, p. 20
https://ssrn.com/abstract=3782191 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Preface to (2021). SSRN: https://ssrn.com/abstract=3782191

Holds when

markets

Classification

failuresupport: arguedfailure: monopoly-liquidity-impairmentfamily: liquidity-and-market-structure-failureeconomicsdefidecentralization

Related claims

extended_by kaal:claim:4067783-037 Centralization and monopolies are a threat to market liquidity because they can carry too much mass or too muc...

Verify

The quote above is an exact substring of the source PDF, whose sha256 is b0bf0529c3cf69839879bc4da476714efee2717a4beb768bd5c859b810e6174e. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/776d50844b6deee1...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3782191-036.md | sha256sum