Experimental evidence reveals that there is a strong willingness to trust and to act in bothpositively and negatively reciprocal ways. So far it is rarely analyzed whether these variablesof social cognition influence everyday decision making behavior. We focus on entrepreneurswho are permanently...

How can a principal (an agent) ensure that an agent (a principal) will work (pay up), ifpayment (work) precedes work (payment)? When a banknote is torn in two, each part is byitself worthless. A principal can pre-commit to payment-on-delivery, by tearing a banknoteand giving the agent the first...