# kaal:claim:3782191-036

**Claim.** 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.

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

**Holds when.**

- markets

**Source quote.**

> 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, page 20

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

**Verify.** sha256 of source PDF `b0bf0529c3cf69839879bc4da476714efee2717a4beb768bd5c859b810e6174e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Preface%20to.pdf

**Failure mode.** monopoly-liquidity-impairment  (family: liquidity-and-market-structure-failure)

**Topics.** economics, defi, decentralization

**Keywords.** monopoly, market-efficiency, liquidity, centralization

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/4067783-037

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