kaal:claim:3808873-011

Centralization follows an S curve: in the expansion phase the benefits of centralizing power, capital and control rise faster than its costs, but in the decline phase the rising costs of centralization, including corruption, diseconomies of scale and cronyism, can no longer be offset, so centralized systems function less optimally and less efficiently.

Source quote, verbatim
Because of the increase in the cost of centralization, the benefits of centralization can no longer offset and outweigh the cost. As a result, centralized systems function less optimally and less efficiently.
From

Wulf A. Kaal, Decentralization Neutralizers (2021), III. S-Curve of Centralization, p. 9
https://ssrn.com/abstract=3808873 · source PDF

Cite as

Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873

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mechanismsupport: arguedfailure: Centralization S Curve Declinefamily: recentralization-driftdecentralizationeconomics

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