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This research aims to explore how intelligent systems can effectively allocate limited resources through decentralized competition among components.

March 26, 2026Open Access

Paper 4_Competition as Cost Discovery: Resource Competition as a Design Principle for Adaptive Intelligent Systems

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This research aims to explore how intelligent systems can effectively allocate limited resources through decentralized competition among components.
Developed a theoretical framework for cost discovery in intelligent systems.
Analyzed concepts of distributed and tacit knowledge as they apply to resource allocation.
Introduced and defined the criterion of cost truthfulness for evaluating competition rules.
Demonstrated that cost information in adaptive systems is local and dynamic.
Showed that centralized control fails to capture true resource costs.
Established that cost-truthful rules compel participants to reveal actual resource efficiency.

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Theoretical framework demonstrates that decentralized competition reveals true costs in intelligent systems, suggesting a novel design principle.

Rui Chai (2026) studied this question.

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Theoretical framework demonstrates that decentralized competition reveals true costs in intelligent systems, suggesting a novel design principle.