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What is the benefit of formal, rule-based, impersonal exchange with third-party enforcement (often termed

arm's-length transaction) versus informal institutions?

Why can't we assume that formal institutions are inherently better than informal ones? How do formal and informal institutions complement each other?

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One benefit of formal, rule-based, impersonal exchange with third-party enforcement (also known as arm's-length transaction)... View the full answer

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