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Paper Summaries/DA-1: GE Theory
FOUNDATIONALPaper #76

General Equilibrium Properties of Process Disclosure: Five Theorems on Governance Documentation

Develops the general equilibrium theory of process disclosure. Five theorems establish threshold adoption, coordination cascades, under-adoption, cost-of-capital amplification, and strategic complementarity. Resolves Prat’s (2005) conformism paradox through multi-audience common agency.

THEOREM TYPE
Foundational
physically/biologically binding
SOURCE STATUS
Working paper · summary pending
verified by paper record
AVAILABLE MODES
OPEN HTML DECK ↗Deck mode is an on-site reading view, not a PowerPoint download.
Theorem status: evidence-traced claim under the cited paper's assumptionsFalsification: show the same game preserving system welfare without changing the payoff structure
EVIDENCE & LIMITATIONS
  • Theorem status: evidence-traced claim under the cited paper's assumptions
  • Falsification: show the same game preserving system welfare without changing the payoff structure
REFERENCES / CITATION STATUS
Reference counts for this manuscript have not been published yet. Treat its citations as unverified until a source list is available.
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Theorem: General Equilibrium Properties of Process Disclosure: Five Theorems on Governance Documentation
SSRN not yet posted

WHY THIS MATTERS

For the economist
A structural claim about when bilateral optimization degrades the shared system. Read the formal statement and its stated axioms.
For the regulator
The constraint is physical or biological, so disclosure alone will not internalize it. The policy lever is to bound exposure, not to price it away.
For the executive
This is where a privately efficient decision can degrade the system the business depends on. The governance question is which decision records would make that system cost visible before it is normalized.
For the teacher
An on-site HTML deck and the expanded curriculum cover the argument, the evidence, and the measurement. Use the deck as a self-contained class session, then route deeper through the 45-50h core course or 100+h full curriculum.
For the affected community
In plain terms: who gains from the current arrangement, who pays for it, and what rule change would alter that split. The summary states each without jargon.
© 2026 Erik Postnieks · Independent Researcher · Salt Lake City