My paper says nothing about this. It just shows that a distorted transaction fee market insufficient for the Bitcoin network to be able to pay for its own security exists without a block size limit
I fixed it for you.
Your most glaringly flawed assumption is to ignore the fact
block space is a scarce resource that is sold, but not paid for, by the miners...which is why a "tragedy of the commons" situation can only be avoided by a block size cap.