Centralizing reputation records cuts the cost of checking any trading partner.

Evidence

In operation, the Law Merchant system would appear to be a low cost way to disseminate information, for two reasons. First, the LM system centralizes the information system so that, for information about any partner, a player need only go to one place. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 132

Categorization

• XREF: Centralization as cost-reduction mirrors why a single Mafia family (or a single credit bureau) outcompetes scattered gossip networks. — connects to: Brokers cut reputation-information costs because their investment is less transaction-specific.; Intermediaries reduce reputational information costs in extralegal markets. — Lisa Bernestein, Opting out of the Legal System, 133

Related

• Intermediaries reduce reputational information costs in extralegal markets. (similarity 0.83)
• Institutions emerge where information is costly, not where enforcement is absent. (similarity 0.81)

Broader Connections

• Intermediaries reduce reputational information costs in extralegal markets. #corroborates (0.95) — Lisa Bernestein, Opting out of the Legal System, 133
• Brokers cut reputation-information costs because their investment is less transaction-specific. #corroborates (0.82)