I empirically test the role of trust in strategic alliances by using survey data from 67 German small and medium-sized enterprises (SMEs). Empirical findings indicate that high trust levels are a good predictor of alliance success. This result is encouraging, as it suggests that well-performing...

This paper investigates the impact of a 'free drug program' on the market equilibrium of drugs. We introduce a screening model of the hard drug market in which dealers use payment and punishment options to screen between high and low risk users. We show that, if a free drug program selects...