Articles

Systematic Stewardship

Tuesday, September 6, 2022

Do Networks Govern Contracts?

Thursday, April 21, 2022
An influential literature in private law argues that the legal system interferes with modern markets’ “private ordering.” Private ordering refers to parties relying upon informal institutions, like social norms and reputational sanctions, to enforce legal obligations. This informal governance is made possible by thick networks of social or commercial relationships, which circulate information about parties’ behavior. Social networks, not the state, govern commerce.