The mafioso, by means which are left unclear but which presumably involve his reputation for toughness, seems capable of deterring the seller from handing over a 'lemon'. Without that protection the coachman is truly at risk, for he is indeed, as it were, saddled with a bad horse. … More difficult to interpret is the fact that the seller too gives the mafioso a tip. This could suggest, in line with Dasgupta's argument (this volume), that with respect to that particular transaction the protection the mafioso offers is really a public good which benefits both sides. If he did not act as guarantor the exchange would not take place at all, for the potential buyer would be deterred from entering the transaction for fear of getting a bad deal. The seller's tip, in other words, might reflect the price he is prepared to pay to be trusted.

DEFINE: The 'lemon' problem in markets where quality is unobservable, with the mafioso as an extralegal guarantor who makes exchange possible by deterring bad-faith behavior on both sides.

Diego Gambetta, Trust - Making and Breaking…, loc. 2239