Han, Huiwen: Signalling Inflation and Rational Adaptation: Why the Market for Cognitive Depth Collapses Gradually, Then All at Once

We construct a game-theoretic account of AI-mediated cognitive decoupling in the production and consumption of knowledge content. Extending Spence’s costly signalling framework to environments where production costs collapse asymmetrically, we prove that AI-mediated decoupling is a strictly dominant strategy under a broad class of utility functions (Dominant Decoupling Theorem). This dominance holds not because agents are deceived, but because the observable signal — a lengthy, wellstructured do