Public humiliation substitutes for weak legal enforcement of debts

Evidence

The sanctions available to traders when dealing with defaulters were weak. One woman was reduced to entering a client’s room at 4 a.m. to steal his only pair of trousers, which she then waved triumphantly in the courtyard while shouting out his crimes: ‘You think Alhassan is a big man because he walks around in trousers and white shirt, but he won’t pay a poor woman for the bread and cola he eats!’ Public humiliation of this sort is a poor substitute for legal sanctions. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2334

Categorization

Category: Causal Relationships

  • XREF: Directly illustrates Hardin: humiliation recovers observability of opportunism when formal constraint is absent — the sanction is reputation damage.

Broader Connections