implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …

We study the effects of reputation and competition in a stylized market for experience goods. If interaction is … anonymous, such markets perform poorly: sellers are not trustworthy, and buyers do not trust sellers. If sellers are … identifiable and can, hence, build a reputation, efficiency quadruples but is still at only a third of the first best. Adding more …

driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and …

' incentives for reputation building and, thus, enhances trust and efficiency in markets. This efficiency-enhancing effect is …Arguing that consumers are the carriers of firms’ reputations, we examine the role of consumer networks for trust in …

the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions--and particularly trust in banks, business and government--has declined … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …