Objectifying a dispute’s subject matter neutralizes the tertius’s exploitative advantage.

Evidence

This objectification of the matter of dispute deprives the entrepreneur of the advantage that he gains by lowering the wages and playing up the two parties against one another. Although he has retained the choice among the different labor groups, he can no longer make any profitable use of it. The earlier mixture of personal and objective elements has become differentiated. In regard to the first, the entrepreneur remains in the formal situation of tertius gaudens; but the objective fixation of the second has taken from this situation the chance of exploitation. — Georg Simmel, The Sociology of Georg Simmel, 4565

Categorization

• XREF: Connects to rules-based institutional design in Milgrom’s law-merchant chapters — replacing discretionary power with standardized procedures strips intermediaries of rent extraction.