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Applied and bridge studies study record
Contracts, agency & organizationsCorporate Law and the Hollow Win
STATUS · Manuscript in progressSSRN · Not yet posted
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.
Contribution — what this adds to the conversation
Provides formal theorems (Corporate Hollow Win, Disclosure Futility, Decision Accounting Transformation) with falsification conditions, bridging law and game theory.
WHAT'S NEW · Novel application of MST to corporate law doctrine, formalizing the Hollow Win outcome and proposing Decision Accounting as a structural fix. The 8-outcome taxonomy applied to corporate decisions is original.
The paper applies the Missing System Theory to corporate law, showing that its bilateral shareholder-manager structure systematically excludes system welfare, producing 'Hollow Win' outcomes where both parties gain while society loses. Using the Lehman Brothers bonus decision as a canonical example, it estimates that each dollar of corporate revenue destroys $8.40 in system welfare. The proposed cure is Decision Accounting: a mandatory 17-field record for corporate decisions that makes system welfare visible, with an estimated $4.2 trillion annual reform dividend.