The Corruption of Financial Markets: System Inevitability or Aberration?

Abstract

A student came to Protagoras to learn the law. Protagoras of fered the following arrangement: The student would pay Protag oras when the student had won his first case in the courts. As soon as the student agreed, Protagoras took the student to court suing for payment on the following grounds: If Protagoras as the plantiff won the case, the student would have to pay Protagoras. If Protagoras lost the case, the student would have won his first case and would owe Protagoras the money on the basis of the agreement. Either way, Protagoras should be paid. The student, being a quick read, argued the contrary. If the student won the case, he would not have to pay Protagoras by the ruling of the court. If he lost the case, he still would not have won his first case, and would not have to pay Protagoras, on the basis of the contract.2