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Social preferences and formal contract enforcement are two mechanisms that facilitate performance of an agreement. The standard argument is that formal contracting substitutes when social preferences are lacking. We, alternatively, explore the hypothesis that social preferences and contract...
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Social preferences and third-party enforcement of formal contracts are two mechanisms that facilitate performance of an agreement. The standard argument is that formal, enforceable contracts substitute when the social preferences of trust and trustworthiness/reciprocity are lacking. We explore...
Persistent link: https://www.econbiz.de/10014129529