Variance Collapse and Model Collapse
Self-referential allocation erodes cross-sectional diversity. The CES diversity premium prevents decay; its absence causes susceptibility collapse.
Impact Score
Score Reasoning
- Importance
- Connects Grossman-Stiglitz, model collapse (ML), and CES variance-response in a unified framework. High relevance for both financial markets and AI training.
- Novelty
- New three-way bridge: Shumailov rate formula + Grossman-Stiglitz + CES/VRI. The identification M = effective independent signals (not passive share) and steady-state result Sigma* = M*sigma_new are novel.
- Quality
- Clear presentation of variance decay recurrence, steady state, susceptibility collapse, and three-literature bridge. Well-structured LaTeX throughout.