# kaal:claim:3782210-002

**Claim.** Markets collapse when opportunistic behavior saps the efficiency of cooperation: once the environment becomes too adversarial and trust is diminished, collaboration is no longer profitable.

**Type.** failure  **Support.** argued

**Holds when.**

- markets with significant information asymmetries
- environments permitting a wide variety of strategies

**Source quote.**

> when the efficiency of cooperation is sapped by opportunistic behavior. When the environment becomes too adversarial, when trust is diminished, collaboration is no longer profitable. The market collapses.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Chapter. Reputation, page 2

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210

**Verify.** sha256 of source PDF `9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Reputation%20for%20the%20Evolution%20of%20Decentralization.pdf

**Failure mode.** Adversarial market collapse  (family: collective-action-and-coordination-failure)

**Topics.** economics, reputation, disclosure

**Keywords.** market-collapse, opportunism, trust, information-asymmetry

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3373393-007

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.