kaal:claim:6819121-032

Market discipline alone will not produce balanced institutional development, because it under-invests in the invisible institutional infrastructure that is most predictive of long-run resilience.

Source quote, verbatim

the visibility paradox implies that market discipline alone will not produce balanced institutional development. Market discipline produces under-investment in invisible institutional infrastructure, and the institutional infrastructure that is most predictive of long-run resilience is precisely the institutional infrastructure that is most underprovided.

From

Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026), IX. Implications, p. 34
https://ssrn.com/abstract=6819121 · source PDF

Cite as

Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026). SSRN: https://ssrn.com/abstract=6819121

Holds when

the public-goods argument applied to the DAO sector

Classification

mechanismsupport: arguedregulatory-failureinstitutional-designeconomics

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