kaal:claim:3782193-003

In a rigid competitive hierarchy governed by secular laws, internal corruption arises because each member's optimal strategy is to push the written rules to their limit, while externally any change in the problems the group faces can find the hierarchy unready.

Source quote, verbatim
Rigid competitive hierar- chies with secular laws face internal corruption as members' optimal strategy is to push the rules to the limit. From the outside, any change in the problems the group faces can find the hierarchy unready to face the new challenge.
From

Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021), Chapter 9. Historical sketches of centralization vs. decentralization, p. 3
https://ssrn.com/abstract=3782193 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193

Holds when
Classification

mechanismsupport: arguedfailure: Rule-limit exploitationfamily: regulatory-arbitrageinstitutional-designrisk-and-incentives

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