This paper studies the role of regional cultural differences in M\&A transactions in the U.S. We construct a county-level measure of cultural trust based on the World Values Survey data and find that a larger social trust distance between two companies reduces the likelihood of them combining...

In every social transaction there is an element of trust. The degree to which we trust others, called generalized trust, is assumed to benefit from interaction with different social groups. In the trust literature, it is opposed by particularized trust, which represents our mutual confidence in...

When trust is shaken, individuals pull back and the market system contracts. Where trust grows, individual energy and creativity are unleashed and the system grows. In Adam Smith's vision of humankind's progress, trust is the central theme. The Great Recession represents a classic case of a...

Purpose - Social capital and its core components of social trust and associational activity are widely acknowledged as a core feature of strong and active civil societies that promote effective democratic governance and economic prosperity. Within this context the present study sets out to...

I examine two competing proposals for reforming and reviving confidence in the international monetary regime. Robert Triffin introduced and championed the proposal for centralized reserves. Fritz Machlup championed the proposal for flexible rates originally introduced by Milton Friedman. Triffin...

Blockchain - distributed ledger technology - is seen as heralding what some call the internet of trust because it provides an immutable chain of authority that is difficult to hack. Satoshi Nakamoto created an algorithm that required immense amounts of computing power to solve cryptographic...

Im Verlauf fortschreitender Ökonomisierung und des in allen Sparten stattgefundenen Größenwachstums von Primärgenossenschaften ist hier und da in der Beziehung Mitglied Genossenschaft ein Verlust von Gemeinschaftsgefühl und persönlicher Verbundenheit eingetreten. Damit geht gewöhnlich...

We examine the characteristics of effective leaders in a simple leader-follower voluntary contributions game. We focus on two factors: the individual's cooperativeness and the individual's beliefs about the cooperativeness of others. We find that groups perform best when led by those who are...

Institutions are important for proper economic performance, but are replaceable by trust or other social norms. We show that when proper institutions and trust are missing, integrity of the individuals can replace them. We construct a model of a transactions-based economy with contracts...