Credibility can be established through cheap signals (transparent constraints, institutional commitments) without actually incurring losses, making costly punishment instrumentally wasteful.
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Promises or agreements you make through formal organizations (like companies or legal systems) that carry official weight.
Instrumentally wasteful(as used in evaluating strategies and outcomes)
Inefficient or pointless as a practical tool for achieving your actual goal.
Transparent constraints(as used in establishing trust)
Clear, visible rules or limitations that you willingly accept, which make your promises seem more believable because others can see you're bound by them.