And then when I ask about AnCap arbitration dealing with the aftermath of stupid choices, you and others say that in AnCap people won't do stupid things so it won't be an issue.
Meanwhile, we have this limited liability thing. A butcher might want limited liability because he's afraid that a frivolous or outright fraudulent lawsuit might cost him everything he owns. Sandy Sandfort says this is worthwhile and doable.
Sam wants high or unlimited liability on his butcher because he might poison Sam and Sam doesn't want that to be cheap for him. Sam is directly opposed to Sandy on this.
I say, most people will not pay a whole lot of attention to this issue most of the time.
What's the chance that a business gets frivolously sued and the arbitrator awards damages that are far too high? Not very likely, right? The arbitrator has to go along, and he won't.
What's the chance your butcher actually poisons you? Pretty low.
If more than a tiny fraction of cranks like Sam care about the amount of money they can sue their butcher for when the butcher poisons them, that butcher is already in trouble. When his customers are worried about how safe his beef is, a whole lot of them are just not going to buy rather than think about how much money they can sue him for. They assume the product is safe or they don't buy it. Whether the liability is the purchase price, or $50, or $500, or $5000 is off the radar.
Meanwhile, businessmen are not going to assume that all their customers are good people. Some small fraction of customers will try to rip them off for everything they can get. Ward off a fraction of the bad ones by putting up a sign? That's a good investment.
And if something does happen? And a business owner actually appears to the arbitrator like he should owe more than his stated liability? Is that going to stop the arbitrator from assigning more damages? No.
Unless the arbitrator is scared of doing the right thing. If doing the right thing means he's never going to do business in this town again.... If influential citizens can do that to arbitrators, when the arbitrators do the right thing and not some wrong thing, then what good are arbitrators?