Dense-group conditions are needed to start but not to sustain reputation regimes.

Evidence

In a given market, geographical concentration, ethnic homogeneity, and repeat dealing may be necessary preconditions to the emergence of a contractual regime based on reputation bonds. As the diamond industry illustrates, however, these conditions are not required for the maintenance of such a system, particularly when the system has already demonstrated itself to be preferable (Pareto preferred) to the established legal regime. — Lisa Bernestein, Opting out of the Legal System, 179

Categorization

• XREF: Directly relevant to the reader’s piazza analysis: it distinguishes genesis conditions from maintenance conditions of community self-governance. — connects to: Reputation systems need cheap information flow, not frequent repeated trade, to enforce honesty. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 13; Prior conditions needed to start a trust regime differ from those that sustain it; Word-of-mouth reputation systems create high entry barriers that technology-based regimes lower. — Lisa Bernestein, Opting out of the Legal System, 209

Broader Connections

• Prior conditions needed to start a trust regime differ from those that sustain it #corroborates (0.97)
• Reputation systems need cheap information flow, not frequent repeated trade, to enforce honesty. #expands (0.85) — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 13
• Word-of-mouth reputation systems create high entry barriers that technology-based regimes lower. #expands (0.72) — Lisa Bernestein, Opting out of the Legal System, 209