D'Acunto, Francesco; Xie, Jin; Yao, Jiaquan - 2021
' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample … of U.S. principal-agent consulting contracts and a negative shock to trust between parties staggered across space and … states of the world contracts cover increase after a drop in trust. The results hold for several text-analysis-based measures …