# kaal:claim:3949098-018

**Claim.** Meaningful reputation in a business network removes the need for monitoring cost and lowers transaction costs by orders of magnitude.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- meaningful reputation exists in the business network

**Source quote.**

> Reputation removes the need for monitoring cost. It lowers transaction costs in orders of magnitude.

**From.** Wulf A. Kaal, *Reputation as Capital – How DAOs Upgrade Finance* (2021), II. Basic Concept, 3. Risk Optimization, page 12

**Cite as.** Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098

**Verify.** sha256 of source PDF `04297905564a6092b2db7640561f58fd374d3114c79527357bad09d11b909819` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Reputation%20as%20Capital%20%E2%80%93%20How%20DAOs%20Upgrade%20Finance.pdf

**Topics.** compliance, economics, reputation, ai-and-agents, corporate-governance

**Keywords.** monitoring-costs, transaction-costs, reputation-systems, principal-agent

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3249860-005

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