# kaal:claim:3782192-017

**Claim.** The Folk Theorems of game theory prove that any rules that can be formally set down can be subverted: strategies always exist that follow the rules and still allow a minority player to profit at the expense of the majority.

**Type.** failure  **Support.** evidenced

**Holds when.**

- any formally specified rule set analyzed as a repeated game

**Source quote.**

> The Folk Theorems of Game Theory (explained in Chapter ^) prove the point that any rules that can be formally set down can be subverted. Strategies al- ways exist which follow the rules and yet allow a minority player to profit at the ex- pense of the majority.

**From.** Craig Calcaterra, Wulf A. Kaal, *Introduction to Decentralization* (2021), Overview & Introduction: The process of organizational development, page 5

**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.** Formal rule subversion (Folk Theorem)  (family: enforcement-gap)

**Topics.** economics

**Keywords.** folk-theorems, game-theory, rule-subversion, corruption

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3782193-011
- extends: https://wulfkaal.github.io/claims/3402701-011
- restates: https://wulfkaal.github.io/claims/3406323-040
- extended_by: https://wulfkaal.github.io/claims/3782220-004

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