Computational modeling and retrospective audit demonstrates cost and welfare divergence in institutional protocol governance, suggesting key screening criteria for shared interfaces.
How should institutions decide which recurrent interactions to expose as shared machine readable boundaries? This article connects literatures on modularity, transaction costs, standards, infrastructure, and administrative burden to answer that selection question. A diagnostic model shows how a common specification and local mappings can replace repeated bespoke translation. This is agreement compression: a reduction in the domain over which agreement is required, not consensus about purposes or values. Every protocol also selects which cases are representable before its substantive rules run. The resulting Protocolization Frontier screens accounted costs subject to separate welfare and rights tests. A designed graph sweep directly instantiates the compression mechanism: complete and fixed-density compatibility graphs exhibit the predicted quadratic growth in bespoke mappings and cross into fixed-cost protocol advantage, whereas a degree-four graph does not. A separate case-flow simulation shows how cost, welfare, and constraint screens can diverge under stated assumptions, although paired intervals leave some directions indeterminate. A four-document retrospective audit shows that the nine frontier variables distinguish dimensions of Estonia’s X-tee, the EU’s eIDAS 1.0, the Dutch SyRI system, and Australia’s Robodebt while leaving some cells unknown. Together, these studies establish conditional mechanism behavior and documentary measurability, not causal or population-level validity. The contribution is a conditional selection and escalation framework rather than a new mathematical foundation or a claim that interface-based governance is novel.
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Satoshi Sashida (2026) studied this question.
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