Article II.III.III.II: Insurance of Reciprocity

PROBLEM STATEMENT?

( … )?

Where;

1.3.2 – RECIPROCITY

Reciprocity consists of the via-negativa elimination of incentives to avoid cooperation, to boycott, to retaliate, and to engage in retaliation cycles, whether by interpersonal personal social, economic, political, military, and strategic, by evasion or boycott, undermining or sedition, and theft, harm, or war.

Reason for Cooperation

Cooperation requires a coincidence of wants that can be voluntarily satisfied by the actions of both parties.

Benefits of Cooperation

Cooperation provides a disproportionate return on time and effort that is not achievable by an individual alone. The benefits of cooperation scale from the individual to the group to very large groups. These benefits are dute to division of labor (concentration of time), division of knowledge (concentration of time), reduction or elimination of switching costs (concentration of time), reduction or elimination of transaction costs (concentration of time), and division of and reduction of responsibility (risk). The result is a non linear increase in returns on cooperation, and an additinoal decrease in overall costs, and an additional increase in overall returns of roughly twenty percent, with every doubling of the number of people cooperating. This concentration of productivity in time is the reason for the value of cooperation, and why voluntary cooperation determines the condition of a people.

  1. Division of Labor,
  2. Division of Knowledge,
  3. Reduction of Switching Costs,
  4. Reduction of Transaction Costs
  5. Division of and Reduction of Responsibility (Risk)

Logic of Cooperation

The logic of cooperation consists of only three choices, within those choices, and the time duration of that choice:

  1. Conflict: Extermination(Permanent) > Predation(Opportunistic) > Parasitism(Continous)
  2. … Avoidance: Boycott(Permanent) > Evasion(Opportunistic) > Avoidance(Continuous)  
  3. … … Cooperation: Exchange (Opportunistic) > Contract(Temporary) > Duty(Continuous)

Criteria for Cooperation

The criteria for cooperation is the reduction of risk sufficient to justify the returns, where the lower the risk of cooperation the more frequent the cooperation the lower the costs of cooperation and the greater the returns on cooperation. (Note that this is a via-negativa explanation of cooperation.)

  1. Absence of disincentive to cooperation, by the absence of the spectrum of conflict (risk)
  2. Presence of opportunity for increasing demonstrated interests (capital increases reduce risk over time (create benefits in time))
  3. Presence of the conditions for the reduction or elimination of risk (reciprocity).

Committment to Cooperation

This sequence consists of the process of increasing commitment and specificity:

|Specificity|: cooperation > agreement > consent

It starts with a general intention to work together (cooperation), becomes more specific with a mutual understanding about what that work will involve (agreement), and culminates in a voluntary and informed decision to proceed with the agreed-upon action (consent).

The Dimensions of Reciprocity:

Reciprocity requires limiting our display, word, and deed to:
… Productive and;
 Fully informed (truthful and complete);
… … Free of Hazards (Baitings into Hazard)
… … … and Regardless of cost;
 Voluntary(and Subjective) Transfer (or exchange);
… … of Demonstrated (and objective) Interests
… … … … Free of Imposition of costs
… … … … Upon the Demonstrated Interests of Others;
… … … … … Either Directly or indirectly by Externality
… Within the limit of possible due diligence (by the actors); (part of what the law achieves is a collection of due diligences within a domain).
… Within the limit of incentive for in-group defection (proportionality);
… Within The Limit of the Utility of Future Cooperation with outgroups;
… And liable and warrantied,
… … within the limits of restitutability;
… Eliminating the incentive of retaliation and retaliation cycles,
… And imposition of costs upon the commons of trust by which all ingroup cooperate;
… Leaving only the knowledge and incentive to cooperate, and gain the continous benefits of continued cooperation.
… (Velocity of cooperation, prosperity from velocity)

WHERE
Display Word Deed Consists of:
Any means by which information can be produced and transferred, or unproduced and witheld:
… Display: passive observable information or behavior, signaled or unsignaled
… Word: active sounds, or words, stated or unstated
… Deed: actions or inactions
Or any combination thereof: Such as Writing (display and word), Flag Waving (display and deed), Acting in a Play(word and deed).

AND;
Productive (Gain, Beneficial, Not a Loss) Consists of:
Any action, transfer, or exchange causes all parties increase the inventory of their demonstrated interests, and no party experiences a net loss in demonstrated interests.

AND;
Fully Informed (Not under-informed) Consists of:
Exhaustively informed (complete), by truthful (testimonial) speech, within the limits of possible due diligence.

AND;
Free of Baitings into Hazard
 Consists of:
Seduction, enticement, baiting, or entrapment into an asymmetric risk, where one benefits from other’s bearing of risk, cost, or harm and takes advantage of human tendency to seek gains now and minimize incremental risks over time. Especially when Advertising, Gambling, Usury, Prostitution, Drugs, and deceptive, false, or impossible political, religious, pseudoscientific, and promises are the most common moral hazards.

Note: Disambiguation: Hazard (risk), Hazarding (the act by it’s nature), and Baiting into Hazard(unintuitive that the act is a hazard due to ignorance, possibility, or probability.).  limit risky exchanges to people who fully understand the risks, and are capable of managing regulating avoiding them, especially over time.

AND;
Regardless of Cost
 (to what and whom) Consists of:
The requirement to bear these costs and the costs of warranty and insuring them regardless of emotional, psychological, physical, material, costs to your demonstrated interests and the demonstrated interests of others by externality.  

AND;
Voluntary Transfer
 (Not involuntary) Consists of:
The disposition (use, release, consumption, destruction) of a demonstrated interest, knowingly, willingly, by choice, and free of coercion to do so, in exchange for a subjective or objective benefit or gain.

AND;
Demonstrated interests
 Consists of:
An investment by action or forgoing of action, in a monopoly, proportional, or partial control of, or benefit from, any form of capital (resource) whether personal, familial, kin, kith, associative, cooperative, material, behavioral, informational, informal or formal, existential or opportunistic, which humans demonstrate they desire to save, use, transform, trade, consume, or destroy.

AND:
Externality
 Consists of:
Any side effect or consequence of an display word or deed that affects the demonstrated interests of other parties involved in the action.

AND;
Due Diligence
 Consists of:
The care that a reasonable person, given the limits of his abilities, exercises to avoid the imposition of costs on the demonstrated interests of others by a comprehensive, systematic, and investigative process undertaken to assess and evaluate the potential risks, rewards, and opportunities associated the action or actions – thereby permitting truthful warranty, and even if requiring restitution (Tort), eliminating incentive for retaliation and punishment (crime) in the case of any undesired outcome.

AND;
Ingroup, Outgroup
 Consists of:
The ingroup refers to those members of the polity that are insured by the insurers of the polity vs the outgroup refers to those that are not insured by the insurers of those members of the polity, where the polity is defined by the insurers and insured.

AND;
Warrantied
 Consists of:
Liability for restitution (repair, replacement, compensation), punishment, and prevention should the transfer result in imposition of costs upon the demonstrated interests of others internal or external to the transfer because of a failure to meet the terms of Reciprocity.

AND;
Limit Of Resitutability
 Consists of:
One cannot warranty the restitutability when restitution is either impossible or beyond one’s means, without including an additional insurer external to the transfer who will provide restitution in the event of conflict. As such one is limited to actions transfers and exchanges that are within his limits of resitution.
(“Don’t write a check your ass can’t cash”, “Can you pay for that? Then don’t touch it”)

AND;
Retaliation and retaliation cycles
 Consists of:
Imposing costs on the demonstrated interests of another or others as a response to an imposition of costs on one’s demonstrated interests, and most often occurs when one individual or group seeks to punish or dissuade another individual or group from imposition of costs upon their demonstrated interests. 

AND;
Commons of Trust Consists of:
The informal capital consisting of the expectation that all other parties in the polity will insure the sovereignty of every other party’s demonstrated interests, and one another’s reciprocity in display word and deed, thereby incrementally reducing all risk, increasing the complexity, scale and rate of cooperative, innovative, adaptive, and evolutionary coooperation, maximizing the prosperity of all members of the polity. This is the most costly capital to produce requiring the most diligence, but having the highest returns of all.

OR;
Combinations thereof:

Such as Productive AND Voluntary:
Productive and Voluntary is easiest to explain by the case of blackmail that may include a voluntary exchange but represents a net loss of demonstrated interest capital by the blackmailed. If we include the female means of antisocial behavior, in addition to the male then blackmail is also involuntary as well as unproductive. Blackmail forces a cost of defense, violating the principle of insurance of the demonstrated intersets of others. a) must not violate the principle of reciprocal insurance of demonstrated interests. b) must not impose a cost on the demonstrated interests of another or others c) must not force an exchange by the force of a threat against the demonstrated interest of another or others. Conversely, ‘we don’t need your approval to increase your capital demonstrated interests’ because that’s how we create value (capital) in the commons by so much indirection. (To what ends, to what capital, over what time scale?) 

THEREFORE;
Inalienability of Responsibility: And in summary, there are no conditions under which one can avoid responsibility for the imposition of costs.

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