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confidence. We use networks and reputation as indicators for trust, and ex ante contractual efforts and ex post contractual …
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Empirical research in finance has documented a strong positive and convex relationship between investment performance and flows in and out of managed portfolios such as mutual funds. It is also well-known that fee contracts for portfolio managers give the manager a fixed-fraction of assets under...
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absence of legal enforcement and reputation formation opportunities the credit market breaks down almost completely while if … reputation formation is possible a stable credit market emerges even in the absence of legal enforcement of debt repayment …
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This paper examines the workings of reputational contract enforcement when the community can only observe that a …
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