&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement … automotive industry. Consistent with the model's predictions, higher levels of trust are associated with higher investment levels … - but also with more competitive procurement: trust and rents from reduced supplier competition in the procurement process …

, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …