Once the equalizing ideal that moderates a decentralized organization is lost, competition generated by the profit motive leads inevitably to centralization with rigid rules about who holds power and wealth.
Source quote, verbatim
Without the previous equalizing ideal to moderate, the competition generated by the profit motive led in- evitably to the organization centralizing with rigid rules for who has power and wealth.
From
Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021), Chapter 9. Eight institutions, p. 2 https://ssrn.com/abstract=3782205 · source PDF
Cite as
Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782205
Holds when
organizations lacking a moderating shared ideal
Classification
mechanismsupport: arguedfailure: Loss of moderating idealfamily: recentralization-driftdecentralizationinstitutional-design
Related claims
extendskaal:claim:3782193-026 The authors accept Brafman and Beckstrom's thesis that the best way to convert a decentralized organization in...
restated_bykaal:claim:3782214-018 Internal competition for profit creates a natural tendency to centralize power as members differentiate themse...
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