Cole, Harold L.; Krueger, Dirk; Mailath, George J.; … - 2021
future cooperation which we term \social capital". We treat the contracting conditions of original and deviating coalitions … symmetrically and show that higher social capital tightens incentive constraints since it facilitates both the formation of the … original as well as a deviating coalition. As a consequence, although social capital facilitates the initial formation of …