In this article, I offer an economic analysis of the characteristics that are associated with corruption when it is facilitated through social exchange or “guanxi” as it is called in China. To that end, I challenge the framework applied in classic social exchange theories and contend that...

Trust. Loyalty. Friendship. These were once the building blocks of good business relationships. Today, it's becoming increasingly difficult to know whom to trust. How do we protect ourselves and our business interests from the unethical behaviours of others? Why doesn't intuition serve as the...