# kaal:claim:3782217-026

**Claim.** A central authority is perfectly well incentivized to ignore minor problems that only partially eat into its profits, so long as it maintains ultimate control of those profits, which is why platform level abuses persist under centralized ownership.

**Type.** mechanism  **Support.** argued

**Holds when.**

- platforms with centralized profit control

**Source quote.**

> A central authority is perfectly well incentivized to ignore minor problems which only partially eat into their profits, as long as they maintain ultimate control of profits.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of History In Decentralization* (2021), News and education, page 10

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021). SSRN: https://ssrn.com/abstract=3782217

**Verify.** sha256 of source PDF `358779557d8e7dcd101720ca0fad90b9146d24f1c7c03909eb431fcf1fb7e103` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20History%20In%20Decentralization.pdf

**Failure mode.** central-authority-neglect  (family: agency-cost-and-managerial-opportunism)

**Topics.** risk-and-incentives, decentralization

**Keywords.** platform-incentives, moderation, decentralized-regulation, policing

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.