# kaal:claim:7314479-008

**Claim.** A sovereign local agent runtime inverts the Coasean boundary calculation: it disperses activity to the individual device and then requires continuous machine-speed transacting across that boundary, while the transaction cost of external relation has not fallen to zero but merely been made invisible.

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

**Holds when.**

- sovereign local agent runtimes composing independently operated components

**Source quote.**

> A sovereign local agent runtime inverts the usual geography of that calculation. It disperses activity to the maximum possible degree, placing the boundary at the individual device, and then asks a user or an agent to transact across that boundary continuously and at machine speed. The architecture assumes the transaction cost of external relation is near zero. It is not. It has merely been made invisible.

**From.** Wulf A. Kaal, *Institutional Requirements for Sovereign Local Agent Runtimes* (2026), IV. Connectivity Is Not Coordination, page 8

**Cite as.** Wulf A. Kaal, Institutional Requirements for Sovereign Local Agent Runtimes (2026). SSRN: https://ssrn.com/abstract=7314479

**Verify.** sha256 of source PDF `debace24a155ae924a155b1fafe98856d98cf83689feff2f87a32f1c06171ce6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20Institutional%20Requirements%20for%20Sovereign%20Local%20Agent%20Runtimes.pdf

**Topics.** economics, institutional-design, ai-and-agents

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