There is widespread concern among regulators that favoring suppliers with good past performance, a standard practice in private procurement, may hinder entry by new firms in public procurement markets. In this paper we report results from a laboratory experiment exploring the relationship...

We study beliefs and choices in a repeated normal-form game. In addition to a baseline treatment with common knowledge of the game structure and feedback about choices in the previous period, we run treatments (i) without feedback about previous play, (ii) with no information about the...

While social relationships play an important role for individuals to cope with missing market institutions, they also limit individuals’ range of trading partners. This paper aims at under-standing the determinants of trust at various social distances when information asymmetries are present....