-- At 02:48 PM 4/15/2001 -0700, Tim May wrote:
How non-law-regulated (black) markets work, and how they deal with deception and cheating, is a huge topic. (I recently suggested to David Friedman that he consider taking on this topic for a major book.)
David Friedman lacks empirical data. I have some empirical data. My empirical data is as follows: Information about people's reputations tends to be poor and unreliable, since one cannot report satisfactory or unsatisfactory performance widely. The worst people tend to be discovered and excluded, however because one cannot exercise as much choice about those one does business with as one would prefer, one needs the temperament, physical size, and business associations that enables one to make credible threats of breaking people's arms and legs. Among the better class of people, illegal entrepreneurs who went to the right schools and refrain from taking opiate drugs, one relies overwhelmingly on reputation and character. However among the worse class of people, fly-by-night illegal entrepreneurs, and people who take opiate drugs, one relies heavily on the threat of physical harm. Illegal entrepreneurs tend to become snobs. It is the only practical way to operate an illegal business. --digsig James A. Donald 6YeGpsZR+nOTh/cGwvITnSR3TdzclVpR0+pr3YYQdkG Q/RIlFG+UJ6pqGUy3X9AETW273ySxFK5z+AUeSE0 4lhnDjbUKw95Q08QUiuCur6+KdzxsKpS/tBzQQW0L ----------------------------------------------------- We have the right to defend ourselves and our property, because of the kind of animals that we are. True law derives from this right, not from the arbitrary power of the omnipotent state. http://www.jim.com/jamesd/ James A. Donald