From Market Failure to Intervention Layers: The Principle of Predictable Intervention as a Methodology for Complex Economic Systems

This paper introduces the Principle of Predictable Intervention (PPI) as a layered methodology for intervention in complex economic systems. It argues that market failure is an insufficient guide for policy action because it diagnoses undesirable outcomes without specifying the layer at which intervention can generate predictable, feedback-stable, and cost-rational effects. PPI distinguishes predictable, chaotic, and decoupled layers, and develops three criteria for an intervention layer: theoretical computability, practical computability, and cost rationality. The paper applies this framework to involutionary competition and to cross-agent compatibility in economic governance.