The Cage: How Fiduciary Duty Creates Organizational Incompleteness
Abstract
Formalization enables scale but creates frames that compress reality into legible metrics. Under fiduciary law, boards must demonstrate prudence, pushing organizations toward defensible decisions rather than correct ones. Derives falsifiable propositions. Boundary conditions specify when the tendency becomes a trap (high formalization, high exposure, long lock-in) and when it weakens (founder control, fast feedback).
Fields of Study & Subjects
Corporate Finance and Governance
Corporate Governance and Law
Management and Organizational Studies
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 1 March 2026
- Language
- EN
- Document type
- Preprint