A burned entry fee cannot enter the incentive constraint as a sanction: it does not pad a later walk and affects honesty only through the participation channel of raising the premium.
Source quote, verbatim
What fees cannot do in this layer is enter the incentive constraint as a sanction: the fee is burned at entry, does not pad a later walk, and affects honesty only insofar as ( 12) raises the premium. That is a participation channel, and it follows from the fee’s placement in this model, not from Theorem 1 alone.
From
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026), 7 The market layer (conditional result), p. 10 https://ssrn.com/abstract=7322599 · source PDF
Cite as
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026). SSRN: https://ssrn.com/abstract=7322599
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