Information-gathering capacity itself functions as reputational signaling of reliability
Evidence
Our clients, too, need to know that we know something about them; otherwise they would not take us as credible guarantors. Our capacity for gathering information is part of our reputation. They may even have an interest in deliberately disclosing certain details about themselves, for each party understands that the other will be encouraged to enter into the transaction if he knows that we, as guarantor, are in possession of privileged information. — Diego Gambetta, The Sicilian Mafia The Business of…, 95
Categorization
- XREF: Second-order signaling: not just the info but the known capacity to acquire it creates credibility. Resembles Schelling’s credible commitments where capability itself is read as intent. Directly supports reader’s Coase/Gambetta frame.