relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively …

mutual relationship, is associated with both higher quality of the automotive parts and more competition among suppliers. Yet …

complexity is associated with high contract incompleteness and hence the increased relevance of trust-based relational contracts … trust improves the quality of less complex objects. Even more surprisingly, trust is associated with more competi-tion in …

&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 …