Mechanism designers should size the premium, not the bond: capacity is bounded by the frontier identities, and only the premium scales with the relationship.
Source quote, verbatim
First, size the pre- mium, not the bond: capacity is bounded by ( 6) and ( 7), and only the premium scales
From
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026), 8 Design implications, 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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