# kaal:claim:5886442-029

**Claim.** Path dependent institutional lock in loses its grip when agents can simulate the long run consequences of alternative institutional trajectories and migrate instantaneously to superior equilibria.

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

**Holds when.**

- assumes agents can simulate and evaluate institutional trajectories at negligible cost

**Source quote.**

> path-dependent lock-in effects—historically the most persistent source of institutional rigidity—lose their grip when agents can simulate the long-run consequences of alternative institutional trajectories and migrate instantaneously to superior equilibria

**From.** Wulf A. Kaal, *The AI-to-AI Economy and the Collapse of Anthropocentric Economic Theory* (2025), Overcoming Limited Foresight, page 29

**Cite as.** Wulf A. Kaal, The AI-to-AI Economy and the Collapse of Anthropocentric Economic Theory (2025). SSRN: https://ssrn.com/abstract=5886442

**Verify.** sha256 of source PDF `d2f6edebc562152f6ea706cc3ad944f7a1b81979931571e54cb782849839dfce` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20The%20AI-to-AI%20Economy%20and%20the%20Collapse%20of%20Anthropocentric%20Economic%20Theory.pdf

**Topics.** institutional-design

**Keywords.** path-dependence, north, institutional-change, lock-in, simulation

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