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.
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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.
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failuresupport: arguedreputationeconomicsrisk-and-incentives
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