Physical co-location of bank and arbitrators enables spot diamond trades.

Evidence

Simultaneous exchange is facilitated by the presence of a major diamond-financing bank in the same building as the DDC. In addition, the seven other banks that extend credit to New York dealers are located nearby. — Lisa Bernestein, Opting out of the Legal System, 112

Categorization

• ADDENDUM: Pairs with ‘Grafting & Growth’ on infrastructure: here the physical clustering of bank and arbitration court is itself infrastructure enabling a market to function without formal contract law.
• XREF: Connects to the literature on agglomeration economies and how physical proximity substitutes for formal legal institutions in clustered industries. — connects to: Physical inspection constraints shape where diamond trades happen

Related

• Physical inspection constraints shape where diamond trades happen (similarity 0.90)