What is the development of this that accounts for the different style of transactions, and for risk?
Before trade, X minutes yields a banana or a coconut, which allows for keeping marginal gains. In the trade scenario, this is replaced with a lump sum payment at the end of the day. It seems like we should weigh an all-or-nothing transaction differently then incrementally adding bananas.
Following on this, the risks are different. There’s not much in the way of perverse behavior you will encounter working for yourself. Further, even outside of perverse behavior you will now absorb regular risks that affect the trade partner and their island. Sprained ankle; outbreak of rats; hurricane hits them but not you.
What is the development of this that accounts for the different style of transactions, and for risk?
Before trade, X minutes yields a banana or a coconut, which allows for keeping marginal gains. In the trade scenario, this is replaced with a lump sum payment at the end of the day. It seems like we should weigh an all-or-nothing transaction differently then incrementally adding bananas.
Following on this, the risks are different. There’s not much in the way of perverse behavior you will encounter working for yourself. Further, even outside of perverse behavior you will now absorb regular risks that affect the trade partner and their island. Sprained ankle; outbreak of rats; hurricane hits them but not you.