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This paper challenges the applicability of the classical Second Welfare Theorem in post-AGI contexts where autonomy rights and self-modifying agents disrupt standard commodity assumptions. It proposes a revised framework requiring specific conditions—such as stable moral status and governed self-modification—to ensure that Pareto optima remain certifiably decentralizable. The work distinguishes between economic preference superposition and neural feature superposition, offering a theoretical foundation for economic modeling in advanced AI systems.
Post-AGI Economies: Superposition and the Second Fundamental Theorem of Welfare Economics
arXiv:2606.08267v1 Announce Type: cross Abstract: The classical Second Welfare Theorem decentralizes any Pareto efficient allocation through prices and transfers under convexity and regularity. In post AGI economies, autonomy rights, self-modification, identity continuity, and superposed preferences need not behave as commodities or define a stable welfare relation, so this reduction may fail even when a supporting hyperplane exists. We give an autonomy-qualified Second Welfare Theorem stating the joint conditions convexity, stable moral status, non-fungible rights, welfare selection, non manipulation, governed self modification, and verification under which an autonomy Pareto optimum remains certifiably decentralizable, distinguishing economic preference superposition, a hypothesis about context-indexed choice, from neural feature superposition.
Abstract:The classical Second Welfare Theorem decentralizes any Pareto efficient allocation through prices and transfers under convexity and regularity. In post AGI economies, autonomy rights, self-modification, identity continuity, and superposed preferences need not behave as commodities or define a stable welfare relation, so this reduction may fail even when a supporting hyperplane exists. We give an autonomy-qualified Second Welfare Theorem stating the joint conditions convexity, stable moral status, non-fungible rights, welfare selection, non manipulation, governed self modification, and verification under which an autonomy Pareto optimum remains certifiably decentralizable, distinguishing economic preference superposition, a hypothesis about context-indexed choice, from neural feature superposition.
Computer Science and Game Theory (cs.GT); Artificial Intelligence (cs.AI)
arXiv:2606.08267 [cs.GT]
(or arXiv:2606.08267v1 [cs.GT] for this version)
https://doi.org/10.48550/arXiv.2606.08267 Focus to learn more arXiv-issued DOI via DataCite (pending registration)
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