Bartling, Björn; Fehr, Ernst; Huffman, David; Netzer, Nick - 2021
Under weak contract enforcement the trading parties' trust, defined as their belief in other's trustworthiness, appears … appear less important, suggesting that trust and contract enforcement are substitutes. Here we show, however, that trust and … contract enforcement are complements. We demonstrate that under weak contract enforcement trust has no effect on gains from …
