Simultaneous exchange enables trading with strangers of unknown reputation.

Evidence

In order to understand contractual relations in the diamond industry, it is important to briefly consider why executory agreements-contracts-are used at all. For many transactions, simultaneous exchange is advantageous. It reduces the riskiness of the transaction, decreases transaction costs by eliminating costly and time consuming negotiations over payment terms, eliminates the need for going through the formalities of cachet, and, most important, enables dealers to trade with people about whose reputation they have little information. — Lisa Bernestein, Opting out of the Legal System, 112

Categorization

• XREF: Connects to Coleman’s network-closure thesis from the reader’s project: simultaneous exchange is the third-party-independent transaction, the baseline against which extralegal credit networks matter. — connects to: Markets can organize exchange without requiring high levels of trust; Local alternative currencies reward one hour of work with one hour of community credit — Rebecca A. Martusewicz, Jeff Edmundson, and John Lupinacci, EcoJustice Education: Toward Diverse,…, 1809

Broader Connections

• Markets can organize exchange without requiring high levels of trust #corroborates (0.85)