The Often Unseen Price of Suboptimal Optimum
Defines the core failure mode: local optimization can raise the metric being managed while destroying more value elsewhere in the system.
Paxology studies when locally rational optimization damages the systems it depends on, why the damage becomes hard to see, and what it takes to measure it.
A local metric can improve while the larger system gets worse. This paper defines the Suboptimal Optimum, formalizes the pattern, and develops a measurement program for the value lost beyond the local boundary.
Direct copies of the submitted July 2026 working papers. Every file is mirrored here from the local submission corpus and recorded in a public hash register.
Defines the core failure mode: local optimization can raise the metric being managed while destroying more value elsewhere in the system.
Shows that, under a stated observability condition, monitors built only from a system’s trajectory cannot distinguish a benign welfare world from a collapsing one.
Specifies the exogenous, welfare-touching measurement architecture needed to escape that blindness, and starts pricing the audit burden.
Models welfare coverage as a budgeted measurement problem and derives a cost-coverage frontier under passive and strategic conditions.
Defines Net Systemic Value for AI-augmented firms: value created for downstream units minus value destroyed within them, net of the part’s own cost.
The papers carry the formal claims. These notes explain one testable idea at a time and state where the work remains preliminary.
Why the ordinary A/B win-win classification cannot distinguish Integration from a both-party win that degrades the surrounding system.
Stress-test the formal claims, assumptions, and measurement boundaries. Replication and serious criticism are more useful than praise.
Test whether Systemic Value catches downstream losses that agent ROI, process mining, or local scorecards miss.
Explore the measurement infrastructure, operating team, and company needed to make this usable in real organizations.
These are independent working papers, not claims of settled science or peer review. The public copies are preserved exactly as submitted in July 2026. File sizes, page counts, and SHA-256 hashes are available in the paper register.