Removable Defects: The Economics and Limits of Deliberate Deficiency
A specialist tolerates blind spots that a generalist does not. Usually this is treated as a cost to be minimized. We treat it as a design variable: a deficiency can be kept because it pays and removed on demand in the rare situation where it would be fatal, by routing to a compensation channel. We give three results. First, an advantage condition under which keeping the deficiency is a computable economic position; structurally it is the Ehrlich-Becker market-vs-self-insurance margin applied to a competence gap, with the detector as a Townsend costly-state-verification technology. Second, a two-sided characterization of removability. A coupling lemma shows that when the deficiency is a co...
| Authors | Cheng Qian |
|---|---|
| Primary category | econ.EM |
| Published | 13 July 2026 |
| Last updated at source | 15 July 2026 |
Silytics shows public metadata from arXiv and links to the original. Information may be incomplete or out of date. Last refreshed 17 October 2026. Licenses and terms of the original apply to the work itself. Not financial, legal or professional advice.