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confidence in the ability to learn raises incentives, while confidence in the level of human capital lowers incentives for …
Persistent link: https://www.econbiz.de/10011798132
Reputation systems aim to induce honest behavior in online trade by providing information about past conduct of users …. Online reputation, however, is not directly connected to a person, but only to the virtual identity of that person. Users can … therefore shed a negative reputation by creating a new account. We study the effects of such identity changes on the efficiency …
Persistent link: https://www.econbiz.de/10010359305
Firms exhibit heterogeneity in size, productivity, and internal structure, and this is true even within the same industry. It has been thought since the time of Adam Smith that a firm's internal structure affects its productivity through the channel of gains from specialization. Our paper...
Persistent link: https://www.econbiz.de/10010509965
Formal or informal institutions have long been adopted by societies to protect against opportunistic behavior. However, we know very little about how these institutions are chosen and their impact on behavior. We experimentally investigate the demand for different levels of institutions that...
Persistent link: https://www.econbiz.de/10012226471
Trust affects almost all human relationships - in families, organizations, markets and politics. However, identifying the conditions under which trust, defined as people's beliefs in the trustworthiness of others, has a causal effect on the efficiency of human interactions has proven to be...
Persistent link: https://www.econbiz.de/10011946494
Trust in the citizens of a potential partner country may affect the decision to trade with or to migrate to a foreign country. This paper employs panel data to examine the causal impact of such bilateral trust on international trade and migration patterns. We apply instrumental variables (IV)...
Persistent link: https://www.econbiz.de/10010338889
Persistent link: https://www.econbiz.de/10002122017
Persistent link: https://www.econbiz.de/10002161658
In recent years, many social scientists have claimed that trust plays an important role in economic and social transactions. Despite its proposed importance, the measurement and the definition of trust seem to be not fully settled, and the identification of the exact role of trust in economic...
Persistent link: https://www.econbiz.de/10003793375
We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert’s provision and charging decisions. We argue that the...
Persistent link: https://www.econbiz.de/10003944278