, can affect outcomes. We explore the economics of revealing type in a simple laboratory experiment to learn about the …

one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that …Trust beliefs are heterogeneous across individuals and, at the same time, persistent across generations. We investigate … individuals extrapolate from their own type when forming trust beliefs about the same pool of potential partners - i.e., more …

private information and have the ability to contract on both realized revenue and drilling timing. We show that primary terms …

This paper builds a theory of informal contract enforcement in social networks. In our model, relationships between …. We define trust between two agents as the maximum amount that one can borrow from the other, and derive a simple reduced … form expression for trust as a function of the social network. We show that trust is higher in more connected and more …

the interaction between majority and minority shareholders as a trust game in which the majority is constrained by the …

trust-building contract device: satisfaction guaranteed. We find that satisfaction guaranteed indeed builds trust and …Theorists and policy analysts have convincingly argued that greater trust makes a more efficient society by eliminating … it is fully voluntary, but the guarantee only elicits the trust of buyers when it has legal backing …

-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the … desirable contract rules for avoiding moral hazard. It also shows how the effects of those rules can be replicated in difficult …

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk …-neutral principal and many risk-averse agents. Each agents' output is a stochastic function of his effort level plus an additive shock …