kaal:claim:7261018-018

Over-approval is moral hazard in the monitoring layer itself: the validation pool is the substrate’s monitor, and a pool that approves work failing ground truth is a monitor whose verdicts have decoupled from the quantity it exists to verify, the adjudicator’s failure mode that the incomplete-contracts tradition predicts wherever quality is adjudicated ex post.

Source quote, verbatim
Over-approval is moral hazard in the monitoring layer itself: the validation pool is the substrate’s monitor, and a pool that approves work failing ground truth is a monitor whose verdicts have decoupled from the quantity it exists to verify, the adjudicator’s failure mode that the incomplete-contracts tradition predicts wherever quality is adjudicated ex post.
From

Wulf A. Kaal, Empirical Evaluation of the Agentic Reputation Substrate: Deliberation, the Composition of Error, and the Registered Measurement of Agency Costs in a Controlled Multi-Model Cohort (2026), II.B. Principal-Agent Theory as the Metric Foundation, p. 11
https://ssrn.com/abstract=7261018 · source PDF

Cite as

Wulf A. Kaal, Empirical Evaluation of the Agentic Reputation Substrate: Deliberation, the Composition of Error, and the Registered Measurement of Agency Costs in a Controlled Multi-Model Cohort (2026). SSRN: https://ssrn.com/abstract=7261018

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definitionalsupport: arguedeconomicsrisk-and-incentivesconsensus-and-security

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