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Physics Monkey said:Indeed, in my original paper I tried to emphasize that the identification of the minimal curve in the MERA graph really only gives a bound on the entanglement, although in numerical practice the bonds tend to all give the same contribution.
This issue has been a bit of a puzzle actually, since MERA seems to work too well i.e. is too like classical gravity even when we expect that the putative dual theory shouldn't be. On the other hand, maybe the gravity theory is always quasi-local on some scale. After all, the RG equations are local in any QFT. In general, it seems that there are many different length scales at which we can discuss locality, including the Planck length, the string length, and the AdS radius (approaching from the holographic side).
I naively think of renormalization as usually acting on the Hamiltonian or action of the theory, and it's not very obvious what entanglement is doing, which I think of more as a property of a wave function. OTOH, MERA seems something like "wave function renormalization"? Are these two sorts of renormalization related? Off the top of my head, I can think of this paper by Balasubramanian and colleagues, who mention at the end that their work might be related to the connection you drew.