&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 investigate the role of mutual trust in long-term vertical relationships involving trades of complex goods. High … complexity is associated with high contract incompleteness and hence the increased relevance of trust-based relational contracts …. Contrary to expectations, we find that changes in trust do not impact the quality of highly complex objects. Instead, higher …

, 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 …

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 …

data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the …