Kanagaretnam, Kiridaran; Mestelman, Stuart; Nainar, S. … - Department of Economics, McMaster University - 2012
evidence on the effects of transparency and empowerment on trust (investment by a principal) and trustworthiness (reciprocal … behavior of an agent) in a simple two-person investment game. We find that when principals are empowered by being able to … punish agents who may not act in a way the principal believes is in the principal’s best interest, trust and investment …