Athey, Susan; Calvano, Emilio; Jha, Saumitra - 2016
We analyze the classic problem of sustaining trust when cheating and leaving trading partners is easy, and outside … repeated interaction. Hierarchies provide incentives for loyalty and allow individuals to trust agents to extent that the … inefficient withholding of trust to support group norms, and are not robust to coalitional deviations. In communities whose …