economics Nature Is Weird

Once any company gets 80% full of info, it’s mathematically guaranteed to stop communicating and start falling apart into cliques.

March 20, 2026

Original Paper

Bandwidth Saturation and Dimensional Collapse in Information-Processing Systems

SSRN · 6182498

The Takeaway

We usually blame bad management or poor culture for why companies become fragmented. This paper shows it is a geometric law of physics: once info saturation hits a specific threshold, a unified structure becomes mathematically impossible and must collapse into silos.

From the abstract

We establish a formal relationship between bandwidth constraints and system fragmentation across cognitive, organizational, and network domains. When the ratio of active information streams to parallel processing capacity exceeds a critical threshold (empirically ≈ 0.8), feasible configuration spaces undergo dimensional collapse, making fragmentation geometrically inevitable. This result demonstrates that bandwidth saturation produces structural necessity, not empirical contingency. The framewor