opportunistically. We find that most principals in our experiment do not restrict the agent's choice set but trust that the agent will … perform well voluntarily. Principals who trust induce, on average, a higher performance and hence earn higher payoffs than … incentives as well as the puzzling incompleteness of many economic contracts. …

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 …

, the paper shows how the ordering of tasks may affect the incentives to exert and allocate effort. …

misaligned incentives to investors resulting from the manager's policy are economically significant. We then demonstrate how a … simple risk management practice that accounts for benchmarking can ameliorate the adverse effects of managerial incentives. …

risk. Costs of misaligned incentives to investors resulting from the manager's policy are demonstrated to be economically …

An important lesson from the incentive literature is that explicit incentives may elicit dysfunctional and unintended …

This Paper studies the provision of incentives in a large US training organization, which is divided into about 50 …

transmission tends to be biased toward excessively conservative priors. As a result, societies can be trapped in a low-trust … equilibrium. In this context, a temporary shock to the return to trusting can have a permanent effect on the level of trust. We …

In this paper we characterize a situation in which non-calculative trust has to play a role in the decision to … incentives while the trustful (and thus non-calculative) aspect of the decision is related to the framing of the situation. …