Jamal Awil

← Opting out of the Legal System

Diamond dealers hide their sources to protect profits. [causal]

Given the structure of the market for rough diamonds, however, if S sells to M I, it is unlikely that the stone will wind up in the hands of M2. Dealers keep their trading partners secret, particularly their sources of rough, since a dealer's ability to operate at a profit depends, in large part, on his network of contacts. After buying a stone that can be cut at a profit, most manufacturers do not want to incur the search cost of ensuring that the stone cannot be more profitably cut by another manufacturer, not do they want it known that they have a particular type of rough in their possession.

Lisa Bernestein, Opting out of the Legal Sys…, loc. 220