Repeated interaction gives even one-way trustees incentive to cooperate for future loans.

Evidence

The analysis here of the iterated prisoner’s dilemma applies as well to an iterated one-way trust game, such as that between the lieutenant colonel and Trifonov. When that game is iterated, Trifonov has reason to cooperate in order to induce the lieutenant colonel to continue to loan him the loose cash after each periodic audit. — Russell Hardin, Trust and Trustworthiness, 139

Categorization

• XREF: The Trifonov case exemplifies the repeated-game reasoning central to the Milgrom law-merchant material already kept.