# kaal:claim:3782220-017

**Claim.** Demand for insurance and reputation policing runs counter to prosperity: when the system runs well and everyone profits there is less need for insurance, and when profits fall and competition intensifies cheating becomes more attractive and more policing is needed.

**Type.** mechanism  **Support.** argued

**Holds when.**

- competitive market conditions

**Source quote.**

> If the system is running well and everyone is profiting, there is less need for insurance. When the profits decrease and the system becomes more competitive, cheating becomes more attractive, and more insurance and reputation policing is needed.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Transcendental Unifying Values for Decentralization* (2021), Integrating polar values, page 5

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of Transcendental Unifying Values for Decentralization (2021). SSRN: https://ssrn.com/abstract=3782220

**Verify.** sha256 of source PDF `f0bf1e80c6da60a6f8ba20630562bdf1dab171ccb5267f497dc0b815113cde99` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Transcendental%20Unifying%20Values%20for%20Decentralization.pdf

**Topics.** reputation, economics

**Keywords.** insurance, reputation-systems, cheating, market-cycles, policing

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