Shame-based public sanctions are faster and stronger than court judgment enforcement.
Evidence
The rapid enforcement of judgments is another advantage of DDC arbitration. Unlike a court, the DDC has the ability to bring unique pressures on the losing party to pay: it can put him out of business almost instantaneously by hanging his picture in the clubroom of every bourse in the world with a notice that he failed to pay his debt. Thus, the threat of publicity and the practice of keeping disputes secret as long as judgments are paid gives the defendant an incentive to promptly comply with the arbitrators’ judgment. — Lisa Bernestein, Opting out of the Legal System, 238
Categorization
- QUESTION: How does hanging a picture in every clubroom actually get enforced across world bourses — is the sanctions network contractual among bourses?
- ADDENDUM: Directly relevant to my ‘On Sacrifice’ piece: reputational/communal sanction as a stable enforcer of social-stratified norms.
- XREF: connects to: Arbitration judgments are enforced through public shaming and cross-bourse reciprocity. — Lisa Bernestein, Opting out of the Legal System, 93; Confinement to one community makes reputational sanctions powerful enough to guarantee repayment
Related
- Arbitration judgments are enforced through public shaming and cross-bourse reciprocity. (similarity 0.85)
- A private tribunal can enforce judgments through instantaneous reputational publicity. (similarity 0.85)