AI fundamentally shifts the point where diminishing returns to management kick in

The cost of the "monitoring the monitors" problem. Each new layer of management requires its own administrative support and oversight, causing a recursive cost increase that spirals rapidly.

Network Reciprocity (Martin Nowak)

• The Finding: Cooperation survives in "spatial" or "viscous" populations where cooperators form clusters (small pockets). If you mix the population thoroughly (simulating a globalized, large-scale society), defectors destroy cooperators.


• Relevance: Structure matters more than size. A large economy works only if it

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cooperation is not a permanent state but a dynamic equilibrium that requires constant maintenance—easier to manage in small, adaptable groups than large, rigid ones.