Direction of the second-best bundle under inalienable uses

Determine the direction in which the optimal second-best rights bundle changes when some uses of personalized AI memory are lexically prior to monetary compensation rather than tradable at an exposure rate.

Background

The paper models exposure using a transferable-utility scalar parameter and treats inalienable uses as hard constraints. It acknowledges that this is only a containment strategy: a richer model could make certain uses categorically non-compensable, thereby changing the second-best rights bundle derived under monetary trade-offs. The authors explicitly leave unresolved whether such a change would increase or decrease optimal compensation, control, scope, or other rights components.

References

A model in which some uses are lexically prior to compensation would change the second-best bundle of Theorem~\ref{thm:secondbest}, and we do not know in which direction.

— Beyond Provenance: The Economics and Governance of Personalized AI Memory  (2609.25521 - Chen et al., 22 Sep 2026) in Section 10, Discussion and Limitations