kaal:claim:7314479-017

When selection among services depends on manipulable, non-contextual signals the selected party controls, the market for services clears on claims rather than on outcomes.

Source quote, verbatim
Self-reported capability, static ratings, installation counts, and volume metrics are each manipulable, and none is contextual. A component that performs well on one class of task and poorly on another carries a single undifferentiated score, if it carries one at all. The consequence is that the market for services clears on claims rather than on outcomes.
From

Wulf A. Kaal, Institutional Requirements for Sovereign Local Agent Runtimes (2026), V. The Accountability Gap, Stated Precisely, p. 10
https://ssrn.com/abstract=7314479 · source PDF

Cite as

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

Holds when
Classification

failuresupport: arguedreputationeconomicsrisk-and-incentives

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