PROMISE KEEPING IN THE GREAT SOCIETY: A MODEL OF CREDIT INFORMATION SHARING |
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Authors: | DANIEL B KLElN |
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Institution: | Economics, UC-Irvine, Irvine, CA 92717 |
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Abstract: | Reputation is possible in a small community, but in the Smith-Lippmann-Hayekian Great Society people are mainly strangers. I model credit reporting as a system of formalized and surgically-precise gossip. In the Great Society credit reporting makes possible reputations, which make possible credit relationships. But forming a credit reporting system is no simple matter. Historically it has been local gossip in the small community that has made possible credit reporting "gossip" in the Great Society. |
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