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If I give you $100, and we mark it on a stick, and then split it and give me the longer one, and then I throw away my half and split a new one that says you owe
by SamBam 6y ago
If I give you $100, and we mark it on a stick, and then split it and give me the longer one, and then I throw away my half and split a new one that says you owe me $200, how do we resolve it when the halves come together and don't match? I say you made a new half-stick, and you say I did.
Both parties in a contract can have an incentive to lie.
- Spivak 6y agoYou have to give both parties incentive to produce the original stick. So if they don’t match then you both lose. I don’t think all contracts have an obvious both losing state though.
- DistressedDrone 6y agoI think in this case one of the recipients has a monopoly on violence and doesn't care how much money you think they owe you.
- deleted 6y ago[deleted]