# kaal:claim:6421319-018

**Claim.** Bounded rationality was not a behavioral quirk but the ontological condition that made hierarchy, routines, and institutional inertia rational, so engineering it away strips the behavioral and institutional research program of its explanatory domain for the dominant mode of production.

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

**Holds when.**

- applies to the dominant mode of production in the agentic economy

**Source quote.**

> Bounded rationality was never merely a behavioral quirk. It was the ontological condition that made hierarchy, routines, and institutional inertia rational.

**From.** Wulf A. Kaal, *The Collapse of Scarcity Economics* (2026), IV.C. Organizational Inertia as Historical Artifact, page 18

**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

**Failure mode.** Behavioral Institutional Domain Loss  (family: human-judgment-displacement)

**Topics.** risk-and-incentives, institutional-design, economics

**Keywords.** bounded-rationality, organizational-inertia, institutional-economics, hierarchy

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