When a law is written down rigorously, specifying precisely what is acceptable and unacceptable, competition obliges people to find the most efficient behavior available inside those rules, which is typically behavior located right at the boundary of what is permissible.
Source quote, verbatim
When a law is written down rigorously, specifying precisely what is acceptable and not acceptable, people are obligated by competition to find the most efficient behavior possible within those rules.
From
Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021), Prehistory of information technology, p. 6 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
competitive environments
rigorously codified rules
Classification
mechanismsupport: arguedfailure: Boundary probing under codified lawfamily: enforcement-gaprisk-and-incentiveseconomicsdecentralization
Related claims
extended_bykaal:claim:3782203-003 Strict letter of the law regimes, which the authors call protocol centralization, produce rigid and temporaril...
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