kaal:claim:6607458-014

The First Welfare Theorem requires a fixed production possibility frontier, so when the frontier is endogenous to generative activity Pareto optimality becomes path-dependent and the theorem's existence proof fails in the computative domain.

Source quote, verbatim

The First Welfare Theorem requires a fixed production possibility frontier. When the frontier is endogenous to generative activity, Pareto optimality becomes path-dependent, and the theorem's existence proof fails.

From

Wulf A. Kaal, Computative Economics A Framework for Economic Analysis under Computational Abundance (2026), IV.C. Opportunity Cost in a Generated Space, p. 13
https://ssrn.com/abstract=6607458 · source PDF

Cite as

Wulf A. Kaal, Computative Economics A Framework for Economic Analysis under Computational Abundance (2026). SSRN: https://ssrn.com/abstract=6607458

Holds when

holds where the production possibility frontier is endogenous to generative activity

Classification

failuresupport: arguedfailure: Welfare Theorem Breakdownfamily: research-design-limitationinstitutional-design

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