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The Exhaustion Premium: Why Tenants Don't Sue
Daniel and Hannah had a solid legal case against their landlord—a roof leak, mold, broken lease obligations, and a lawyer-landlord who knew exactly how to exploit the system. They won their case in principle, but lost their security deposit to a mutual waiver of liability. This episode unpacks the brutal math behind tenant-landlord disputes, introducing the concept of the "exhaustion premium"—the hidden cost of exercising your legal rights that keeps 90% of tenants from ever filing small claims, even when they'd win. We explore why individual rationality leads to collective failure, how the…
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