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Applied and bridge studies study record
Networks, information & disclosure

Brokerage Against the Public

STATUS · Manuscript in progressSSRN · Not yet posted
Open teaching deckSSRN — not yet postedPublication record
MECHANISM
Identify the incentive structure and the condition that would falsify the claim.
RULE CHANGE
Read the intervention only after the paper shows how the current payoff space fails to support system welfare.
READER USE
Use the summary to see where private gain creates system exposure, then check the study record.
Reading βW
βW means annual system-welfare loss divided by annual industry revenue Π. Revenue is the denominator, never profit, earnings, or net income; ΔW and Π must use the same domain, same time period, and same activity boundary. See the βW methodology manual.
Contribution — what this adds to the conversation
Provides formal theorems and a measurable metric (βW) for a previously qualitative phenomenon, advancing the SAPM corpus.
WHAT'S NEW · Original synthesis of structural holes theory with MST and SAPM framework, introducing Brokerage Intractability Theorem and βW metric.

The paper identifies a structural failure in regulatory architecture where brokers derive private returns by maintaining 'structural holes' between jurisdictions and regulatory regimes. It formalizes the Brokerage Intractability Theorem, showing that such brokerage leads to a 'Hollow Win' where the broker and client gain while the public system degrades. The paper proposes mandatory 17-field Decision Accounting with Field 17 (SYSTEM WELFARE) as the game-change rule to internalize systemic costs.