# Decentralization limits

`kaal:entity:decentralization-limits`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `decentralization-limits`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 2 works, 2018 to 2021.

**2018**

- [3227933-039](https://wulfkaal.github.io/claims/3227933-039) [failure/argued] *(failure mode)* -- Decentralized organization has not yet displaced the centralized world: traditional incumbents still enjoy enormous market power, and the success of more decentralized systems still depends on the goodwill of the parties involved.
  > Traditional incumbents still enjoy enormous market power and the "success" of more decentralized systems and organizations currently still depends on the goodwill of the parties involved.
  Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Why 'Blockchain' Will Disrupt Corporate Organizations (2018). SSRN: https://ssrn.com/abstract=3227933

**2021**

- [3808852-033](https://wulfkaal.github.io/claims/3808852-033) [failure/argued] *(failure mode)* -- Decentralization is not always efficient, because centralized economies of scale can create the near-optimal efficiencies for economic growth and decentralization may therefore result in the loss of economies of scale.
  > In fact, decentralization may not always be efficient as centralized economies of scale create the near-optimal efficiencies for economic growth.
  Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852
- [3808852-034](https://wulfkaal.github.io/claims/3808852-034) [failure/argued] *(failure mode)* -- Standardized network-based services are very difficult to improve with decentralized approaches when local technical and administrative know-how is suboptimal, and this suboptimality is worsened when the local government lacks adequate financial resources.
  > Especially standardized network-based services are very difficult to improve with decentralized approaches when the level of technical and administrative know- how at the local level is suboptimal. This suboptimality is exacerbated if the local government does not have adequate financial resources.
  Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852
- [3808852-035](https://wulfkaal.github.io/claims/3808852-035) [failure/asserted] *(failure mode)* -- Government decentralization at the local level can favor local elites and may overcomplicate the coordination of national policies.
  > Furthermore, government decentralization at the local level can favor local elites and may overcomplicate the coordination of national policies.
  Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/decentralization-limits.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.