You don’t have to trust people so much as (a) know their incentives, (b) know th

You don’t have to trust people so much as (a) know their incentives, (b) know their capabilities, (c) know your recourse. We have to know quite a bit in order to know their incentives and know their capabilities. But we don’t need to know much to know our recourse. Ergo, institutions of recourse (insurance), meaning the judiciary, provide extraordinary discounts on all transactions great and small.