Reputation sanctions fail if defectors can escape punishment by restructuring.

Evidence

The defector has to pay the full penalty: the firm cannot simply change its management team and ask for and receive forgiveness from the community. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2611

Categorization

  • XREF: The ‘change the management team’ loophole parallels how corporate identity shielding lets actors evade reputational consequences—relevant to fraud and white-collar accountability generally. — connects to: Reputation messaging fails where preemptive mental defences are absent. — Sander van der Linden, Foolproof: Why Misinformation Infects…, 695