kaal:claim:3782214-020

The very explicit rules that unify a diverse group destabilize it over the longer term, because internal corruption and external change render a fixed rule structure ineffective or inefficient.

Source quote, verbatim

However, these unifying rules further destabilize the group in the long-term, be- cause of internal corruption and external changes that make the rule structure inef- fective or inefficient.

From

Craig Calcaterra, Wulf A. Kaal, Decentralized Governance (2021), Instability from profit motive and rigid rules, p. 10
https://ssrn.com/abstract=3782214 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Decentralized Governance (2021). SSRN: https://ssrn.com/abstract=3782214

Holds when

long time horizons
changing market conditions

Classification

failuresupport: arguedfailure: rule rigidity decayfamily: rule-obsolescence-and-ossificationgovernance-design

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