# kaal:claim:3782191-037

**Claim.** Corporations centralize power in order to pursue a singular strategy that efficiently exploits market circumstances, but this produces instability when the market swings, because a brittle hierarchy may crash before it can reorganize to handle a new challenge.

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

**Holds when.**

- corporations with centralized power facing market swings

**Source quote.**

> Corporations tend to have centralized power, because they wish to employ a singu- lar strategy to efficiently exploit the circumstances of the market. However, this leads to instability whenever the market swings.

**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.** brittle-corporate-hierarchy  (family: recentralization-drift)

**Topics.** economics, decentralization

**Keywords.** corporations, market-volatility, brittleness, centralized-power

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