teleo-codex/inbox/archive/2026-02-24-catalini-simple-economics-agi.md
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theseus: 5 claims from ARIA Scaling Trust programme papers
- What: 5 new claims + 6 source archives from papers referenced in
  Alex Obadia's ARIA Research tweet on distributed AGI safety
- Sources: Distributional AGI Safety (Tomašev), Agents of Chaos (Shapira),
  Simple Economics of AGI (Catalini), When AI Writes Software (de Moura),
  LLM Open-Source Games (Sistla), Coasean Bargaining (Krier)
- Claims: multi-agent emergent vulnerabilities (likely), verification
  bandwidth as binding constraint (likely), formal verification economic
  necessity (likely), cooperative program equilibria (experimental),
  Coasean transaction cost collapse (experimental)
- Connections: extends scalable oversight degradation, correlated blind
  spots, formal verification, coordination-as-alignment

Pentagon-Agent: Theseus <B4A5B354-03D6-4291-A6A8-1E04A879D9AC>
2026-03-16 16:46:07 +00:00

1.7 KiB

type title author url date_published date_archived domain secondary_domains status processed_by tags sourced_via twitter_id
source Some Simple Economics of AGI Christian Catalini, Xiang Hui, Jane Wu https://arxiv.org/abs/2602.20946 2026-02-24 2026-03-16 ai-alignment
teleological-economics
processing theseus
verification-bandwidth
economic-bottleneck
measurability-gap
hollow-economy
Alex Obadia (@ObadiaAlex) tweet, ARIA Research Scaling Trust programme 712705562191011841

Some Simple Economics of AGI

Catalini et al. frame AGI economics around two competing cost curves. As AI decouples cognition from biology, the marginal cost of measurable execution falls to zero — but this creates a new bottleneck: human verification capacity.

Key framework:

  • Verification bandwidth — the ability to validate, audit, and underwrite responsibility — is the binding constraint on AGI growth, not intelligence itself
  • This generates a "Measurability Gap" between what systems can execute vs what humans can practically oversee
  • Two destabilizing forces: "Missing Junior Loop" (collapse of apprenticeship) and "Codifier's Curse" (experts codifying their own obsolescence)
  • These pressures incentivize "unverified deployment" as economically rational, driving toward a "Hollow Economy"
  • Solution: scaling verification alongside agentic capabilities to enable an "Augmented Economy"

Directly relevant to scalable oversight degrades rapidly as capability gaps grow with debate achieving only 50 percent success at moderate gaps — Catalini provides the economic framing for WHY oversight degrades (verification bandwidth is finite while execution capability scales).