economics Collision

Educational bureaucracies use the laws of thermodynamics to protect parasitic networks and defeat attempts at reform.

April 29, 2026

Original Paper

THE THERMODYNAMICS OF INSTITUTIONAL PARASITISM: A FORMAL MODEL OF MANAGED FAILURE EQUILIBRIUM IN EDUCATIONAL SYSTEMS

SSRN · 6658119

The Takeaway

Dysfunctional school systems function as stable physical states that actively dissipate the energy intended for improvement. Many observers assume that failing institutions are simply led by incompetent people who want to succeed but cannot. Non-equilibrium thermodynamic models show that these systems are actually operating at a Managed Failure Equilibrium. They are mathematically optimized to resist change and keep resources flowing to internal interest groups. True reform requires breaking the underlying physical logic of the system rather than just changing the leadership.

From the abstract

Why do well-intentioned reformers consistently fail to transform dysfunctional public systems? This paper synthesizes institutional theory with non-equilibrium thermodynamics to introduce the theory of Institutional Parasitism. While existing literature identifies institutional parasites as illegitimate actors who exploit the systems they inhabit (AMR, 2024), and others apply entropy as a metaphor for decay (Aksom, 2023), a mechanical link between parasitic behavior and systemic energy dissipati