A trustor risks loss before any payoff is realized

Evidence

My Italian bank was roughly in the position of Karamazov’s lieutenant colonel. It would make very small profits from the exchanges of my money, but it risked a substantial loss. Moreover, like the lieutenant colonel, the Italian bank was essentially the first mover in the first round of our play, taking its risk alone. — Russell Hardin, Trust and Trustworthiness, 643

Categorization

• DEFINE: Repetition of the game-theoretic first-mover structure from earlier chapters, tying the anecdote back to the formal risk-trust model.
• XREF: The ‘first mover taking risk alone’ directly instantiates the repeated-game/one-shot-cheating analysis from the law-merchant and Milgrom material in the library. — connects to: A woman’s appearance functions as invested capital whose loss is catastrophic — Simone de Beauvoir, The Second Sex, 1571