# kaal:claim:6421319-007

**Claim.** Price collapse under AI abundance is structurally different from cyclical deflation: conventional deflation reflects demand contraction or supply shocks inside scarcity frameworks, whereas abundance driven price implosion reflects production possibility frontiers shifting toward infinity.

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

**Holds when.**

- applies to cognitive and digital goods whose primary inputs become computationally post scarce

**Source quote.**

> Conventional deflation reflects demand contraction or supply shocks within scarcity frameworks. The price "implosion" that AI-driven production generates reflects production possibility frontiers shifting toward infinity.

**From.** Wulf A. Kaal, *The Collapse of Scarcity Economics* (2026), II.A. Structural Abundance vs. Cyclical Deflation, page 7

**Cite as.** Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319

**Verify.** sha256 of source PDF `0f4f68e56ee48bb8b2d73d3ab7fd96fa572e76c195694ffa740360704c1b172d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20The%20Collapse%20of%20Scarcity%20Economics.pdf

**Topics.** economics

**Keywords.** deflation, structural-abundance, production-possibility-frontier, price-collapse

**Related claims.**

- extends: https://wulfkaal.github.io/claims/5886442-014

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