Wage-hired drivers fail because they lack incentive to maintain vehicles

Evidence

If you buy a car or lorry, there are three things you can do with it: drive it yourself, hire a driver, or sell to a driver on a hire purchase basis (‘work and pay’). No one who spends his days behind a wheel is in a position to accumulate. Most naive operators opt for hiring a driver for fixed wages, since the prospective profit is greater. This is why they usually fail: a wage employee has no incentive to maintain the vehicle or to be honest with the takings. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2366

Categorization

  • XREF: Directly instantiates Hardin’s claim that trust requires observable constraints on opportunistic behavior—here economic self-interest, not trust, must be engineered into the contract structure.
  • corroborated: 2 independent passages support this claim — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2366