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Andreas Bauer

AEGIS Compliance and Strategies OÜ

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Preprint Aug 2026

The Institutional Window: Occupation- and Jurisdiction-Specific Calibration of Liability Signaling for Preserved Human Fallback Capability

Problem definition. When generative AI produces expert artifacts clients cannot distinguish from a competent provider's, the classical cost-based quality signal collapses and only outcome-contingent commitments can separate types. Such a commitment certifies an endogenous, perishable asset: the human fallback capabilit...

Andreas Bauer · 0 citations
Preprint Aug 2026

The Fallback as Signal: Preserved Human Skill, Liability, and Competence Signaling in Credence-Good Markets under Improving AI

This work characterize the least-cost separating pledge schedule, show that client stakes shift engagement toward or away from the least-skilled worker depending on the size of the pledge, and derive a stakes threshold above which building skill dominates free-riding on a rival's training - reversing the asymmetric-spe...

Andreas Bauer · 1 citation

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