# kaal:claim:3782192-007

**Claim.** Because information at the edge does not travel up a centralized hierarchy, the central authority makes decisions without full information, and a centralized organization is therefore not well designed to respond to any crisis it has not anticipated.

**Type.** mechanism  **Support.** argued

**Holds when.**

- strongly centralized organizations that leave no decision power at the edges
- novel or unanticipated external challenges

**Source quote.**

> The central authority makes decisions without full information, so a central- ized organization is not well designed to respond to any crisis it hasn't anticipated.

**From.** Craig Calcaterra, Wulf A. Kaal, *Introduction to Decentralization* (2021), Overview & Introduction: The process of organizational development, page 3

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Introduction to Decentralization (2021). SSRN: https://ssrn.com/abstract=3782192

**Verify.** sha256 of source PDF `e7eafd56cb8a8bd15b64cf58216bb655f939bdcc296387e362fd9191976d67ae` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Introduction%20to%20Decentralization.pdf

**Failure mode.** Blindness to information at the edge  (family: information-asymmetry)

**Topics.** decentralization

**Keywords.** information-at-the-edge, centralization, information-loss, crisis-response

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3782193-021

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