Scale-Dependent Inequity Aversion and the Architecture of Meta-Centralization: How Multi-Agent Ecosystems Neutralize Ultimatum Rejection

Behavioral economics demonstrates that economic agents in dyadic (1:1) bargaining routinely sacrifice personal material gain to punish asymmetric surplus allocations—a phenomenon formalized as inequity aversion. However, modern platform economics reveals an empirical paradox: when asymmetric distributions are embedded within large-scale multi-agent (1:N) ecosystems, participant rejection rates collapse to zero despite extreme surplus concentration. This paper formalizes the Scale-Dependent Inequity Aversion model to resolve this paradox. We demonstrate that scaling an economic interaction from a dyad to a multi-agent network systematically alters behavioral utility parameters through three distinct mechanisms: (1) the attenuation of perceived counterparty intentionality, (2) the institutionalization of social comparison via social proof, and (3) the collapse of perceived efficacy in inflicting retaliatory damage. We show that platform architects intentionally deploy decentralized narratives and fractionalized risk structures to transition interactions from dyadic bargaining games into multi-agent compliance equilibria. We term this structural strategy Meta-Centralization: the masking of centralized value extraction behind decentralized user architectures.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-10-15
DOI
https://doi.org/10.5281/zenodo.23383148
Primary Topic
Digital Platforms and Economics
Type
preprint
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
preprint

Scale-Dependent Inequity Aversion and the Architecture of Meta-Centralization: How Multi-Agent Ecosystems Neutralize Ultimatum Rejection

Min Jinseong
Zenodo (CERN European Organization for Nuclear Research)
Digital Platforms and Economics
preprint

Scale-Dependent Inequity Aversion and the Architecture of Meta-Centralization: How Multi-Agent Ecosystems Neutralize Ultimatum Rejection

Min Jinseong
preprint en

Abstract

Behavioral economics demonstrates that economic agents in dyadic (1:1) bargaining routinely sacrifice personal material gain to punish asymmetric surplus allocations—a phenomenon formalized as inequity aversion. However, modern platform economics reveals an empirical paradox: when asymmetric distributions are embedded within large-scale multi-agent (1:N) ecosystems, participant rejection rates collapse to zero despite extreme surplus concentration. This paper formalizes the Scale-Dependent Inequity Aversion model to resolve this paradox. We demonstrate that scaling an economic interaction from a dyad to a multi-agent network systematically alters behavioral utility parameters through three distinct mechanisms: (1) the attenuation of perceived counterparty intentionality, (2) the institutionalization of social comparison via social proof, and (3) the collapse of perceived efficacy in inflicting retaliatory damage. We show that platform architects intentionally deploy decentralized narratives and fractionalized risk structures to transition interactions from dyadic bargaining games into multi-agent compliance equilibria. We term this structural strategy Meta-Centralization: the masking of centralized value extraction behind decentralized user architectures.

Zenodo (CERN European Organization for Nuclear Research)
Reduced inequalities
Digital Platforms and Economics
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.