kaal:claim:4796714-016

Decentralized governance structures impose their own costs: with no central authority to coordinate diverse stakeholders, consensus is difficult to reach, negotiations are prolonged, and enforcement of agreements is weak because no single entity is responsible for compliance.

In decentralized systems, the lack of a central authority often leads to difficulties in coordinating and achieving consensus among diverse stakeholders, each with their own priorities and objectives. This can result in prolonged negotiations or weak enforcement of agreements

Wulf A. Kaal, AI Governance (2024), Challenges, p. 29
https://ssrn.com/abstract=4796714 · source PDF

Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

• applies to decentralized structures without a coordinating authority
• evidenced in the paper by the environmental agreement domain

failuresupport: evidencedfailure: decentralized coordination failurefamily: collective-action-and-coordination-failuredecentralizationinstitutional-designcomplianceconsensus-and-securitygovernance-design

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