kaal:claim:6607458-016

Marginal cost collapse severs the price-cost relationship underlying competitive market theory: when additional realizations cost effectively nothing, the supply curve for realizations becomes horizontal at zero and pricing shifts to generative capacity.

Source quote, verbatim

The supply curve for realizations becomes horizontal at zero. Pricing in the computative domain attaches to generative capacity rather than to the realization.

From

Wulf A. Kaal, Computative Economics A Framework for Economic Analysis under Computational Abundance (2026), V. Three Dissolution Mechanisms, p. 14
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

applies to information-intensive goods as generative infrastructure scales

Classification

mechanismsupport: arguedfailure: Price-Cost Severancefamily: research-design-limitationtokenomics

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