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Applied and bridge studies study record
Hollow Win theory & mechanisms

The Welfare-Theorem Boundary and the Myerson-Satterthwaite Sibling

CONTENT · Archive pendingSTATUS · Manuscript in progressSSRN · Not yet posted
Archive pending: this older foundational companion record is being superseded by the current top-100 core route. Treat the Decision Accounting papers, Missing System Theory papers, System Asset Pricing Model welfare ledger, and active core records as the production source of truth; use this record only as historical source material.
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
The paper shows only that they describe a regime – complete markets, no externalities – that is the complement of the regime in which the MST bites. Myerson and Satterthwaite’s result is also left intact; it is relocated from a subordinate or competing status to a sibling status alongside the MST. The Arrow–Starrett missing-market diagnosis (Arrow 1969; Starrett 1972) is identified as the intellectual ancestor of the axiom of system independence, and the connection is stated explicitly
WHAT'S NEW · Complete markets switch off MST because the system coordinate is no longer missing. Myerson-Satterthwaite and MST are independent, binding on different constraints. The paper closes the loose use of 'special case' across the program. The taxonomy assigns each monument a distinct relation to MST.
Archive pending
Archive pending: this older foundational companion record is being superseded by the current top-100 core route. Treat the Decision Accounting papers, Missing System Theory papers, System Asset Pricing Model welfare ledger, and active core records as the production source of truth; use this record only as historical source material.
Use the theorem, source chapters, or teaching deck tabs for this work while the public summary is reconciled.