{
 "@context": "https://schema.org",
 "@type": "Claim",
 "@id": "https://wulfkaal.github.io/claims/3782210-024",
 "identifier": "kaal:claim:3782210-024",
 "text": "In hierarchical structures where members are siloed and have few formal connections across tiers, letting service providers create the regulations produces moral hazard, because the provider has an incentive to weaken standards and regulations.",
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0009-0008-7840-1847"
 },
 "citation": "Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210",
 "isBasedOn": {
  "@type": "ScholarlyArticle",
  "name": "The Importance of Reputation for the Evolution of Decentralization",
  "datePublished": "2021",
  "url": "https://ssrn.com/abstract=3782210",
  "sha256": "9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e",
  "encoding": "https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Reputation%20for%20the%20Evolution%20of%20Decentralization.pdf"
 },
 "keywords": [
  "risk-and-incentives",
  "institutional-design",
  "regulatory-failure"
 ],
 "about": [
  "moral-hazard",
  "self-regulation",
  "hierarchy",
  "regulatory-capture"
 ],
 "abstract": "In a hierarchical structure, where members are siloed and have few formal connections with those immediately above and below their tier in the hierarchy, this leads to the moral hazard problem that the service pro- vider has an incentive to weaken the standards and regulations.",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "claim_type",
   "value": "failure"
  },
  {
   "@type": "PropertyValue",
   "name": "confidence",
   "value": "argued"
  },
  {
   "@type": "PropertyValue",
   "name": "scope_conditions",
   "value": [
    "hierarchical, siloed organizations",
    "self-regulation by service providers"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "is_failure_mode",
   "value": true
  },
  {
   "@type": "PropertyValue",
   "name": "attestations",
   "value": "https://wulfkaal.github.io/colloquium/attestations/f0dc1f6fc2b712cbc4afe78bd55abf47984526d7d7255450783f2f10e112dc53.json"
  },
  {
   "@type": "PropertyValue",
   "name": "edges",
   "value": []
  }
 ],
 "isPartOf": {
  "@id": "https://wulfkaal.github.io/claims/index.json"
 },
 "dateModified": "2026-07-27",
 "version": "1.0",
 "sha256": "f0dc1f6fc2b712cbc4afe78bd55abf47984526d7d7255450783f2f10e112dc53",
 "canonicalForm": "https://wulfkaal.github.io/claims/3782210-024.md"
}