Enforcement of legal judgments depends on the technology and liquidity of wealth transfer.

Evidence

Notice that the feasibility of satisfying all these conditions simultaneously depends on the technology of wealth transfer summarized byf. If the traders live at great distances from one another and if their principal asset holdings are illiquid (such as land and fixed capital, or reputation and family connections), then wealth transfers may be quite costly (f(J)/J may be large) and the fines required by the LM system then will not work. — PAUL R. MILGRO, PAUL R. MILGRO - THE ROLE OF…, 118

Categorization

• XREF: Connects to the idea in older trade history that long-distance medieval trade enforcement relied on reputation and community ties precisely because liquid assets were scarce. — connects to: Technological change in contract enforcement can alter industry structure without altering trade customs. — Lisa Bernestein, Opting out of the Legal System, 209; Larger transactions worsen the liquidity trap of litigation. — Lisa Bernestein, Opting out of the Legal System, 214

Related

• Larger transactions worsen the liquidity trap of litigation. (similarity 0.83)
• Private trade-enforcement systems fail when wealth transfer is costly (similarity 0.81)