More order with less law: on contract enforcement, trust, and crowding

Most contracts, whether between voters and politicians or between house owners and contractors, are incomplete. “More law,” it typically is assumed, increases the likelihood of contract performance by increasing the probability of enforcement and/or the cost of breach. We examine a contractual relationship in which the first mover has to decide whether she wants to enter a contract without knowing whether the second mover will perform. We analyze how contract enforceability affects individual performance for exogenous preferences. Then we apply a dynamic model of preference adaptation and find that economic incentives have a nonmonotonic effect on behavior. Individuals perform a contract when enforcement is strong or weak but not with medium enforcement probabilities: Trustworthiness is “crowded in” with weak and “crowded out” with medium enforcement. In a laboratory experiment we test our model’s implications and find support for the crowding prediction. Our finding is in line with the recent work on the role of contract enforcement and trust in formerly Communist countries

Partial transpose criteria for symmetric states

We express the positive partial transpose (PPT) separability criterion for symmetric states of multi-qubit systems in terms of matrix inequalities based on the recently introduced tensor representation for spin states. We construct a matrix from the tensor representation of the state and show that it is similar to the partial transpose of the density matrix written in the computational basis. Furthermore, the positivity of this matrix is equivalent to the positivity of a correlation matrix constructed from tensor products of Pauli operators. This allows for a more transparent experimental interpretation of the PPT criteria for an arbitrary spin-j state. The unitary matrices connecting our matrix to the partial transpose of the state generalize the so-called magic basis that plays a central role in Wootters' explicit formula for the concurrence of a 2-qubit system and the Bell bases used for the teleportation of a one or two-qubit state.Comment: 8 page

Quantumness of spin-1 states

We investigate quantumness of spin-1 states, defined as the Hilbert-Schmidt distance to the convex hull of spin coherent states. We derive its analytic expression in the case of pure states as a function of the smallest eigenvalue of the Bloch matrix and give explicitly the closest classical state for an arbitrary pure state. Numerical evidence is provided that the exact formula for pure states provides an upper bound on the quantumness of mixed states. Due to the connection between quantumness and entanglement we obtain new insights into the geometry of symmetric entangled states