preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread …

opportunistic behavior, but may cause the manager to pursue conservative courses of action to preserve his reputation. This … undermines the benefits of delegating control, leading to decreased managerial authority and stronger monetary incentives. When …

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers … different measures of supplier-buyer trust, that higher levels of trust mitigate relationship-specific underinvestment in a … classical hold-up situation. Moreover, contrary to the extant literature, we show that higher levels of supplier's trust are …

relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively …

We provide a test of the role of social preferences and beliefs in voluntary cooperation and its decline. We elicit …