Principals collectivize trust oversight to gain leverage through embedded ties.

Evidence

Other principals join membership associations and support public-interest group watchdogs or collectivize to share the costs and enjoy the economies of scale involved in protecting their trust. Collectivization also serves as an embeddedness strategy, since these associations are more likely than their constituents to have dense, repetitive, or ongoing ties to trustees that enable them to select, monitor, and control those who act on their behalf (Galanter 1974). — Shapiro, Susan P., The Social Control of Impersonal Trust, 98

Categorization

  • XREF: connects to: Impersonal trust emerges where principals lose direct power to regulate agents. — Shapiro, Susan P., The Social Control of Impersonal Trust, 51; Outside trust inspectors must infer trustee quality from indirect evidence. — Shapiro, Susan P., The Social Control of Impersonal Trust, 98

Broader Connections