kaal:claim:7322599-026

Mechanism design must distinguish relationship retention from stake captivity: an in-place sanction changes which premium enters the constraint, while a pending-claim freeze moves a case from leaky to captive treatment without converting exit misconduct into in-place misconduct.

Source quote, verbatim

Third, distinguish relationship retention from stake captivity: an in-place sanction changes which premium enters the constraint, while a pending-claim freeze can prevent release and move a case from leaky to captive treatment without itself converting exit misconduct into in-place misconduct.

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. 11
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

Holds when

conditional on the maintained model

Classification

designsupport: arguedgovernance-designinstitutional-designrisk-and-incentives

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