This article employs Agent-Based Computational Economics (ACE) to investigate whether, and under what conditions, trust is viable in markets. The emergence and breakdown of trust is modeled in a context of multiple buyers and suppliers. Agents develop trust in a partner as a function of observed...

One of the most important functions of a simultaneous equation model is prediction the values of endogenous variables given the values of the predetermined variables and a lot of work has been done to estimate the accuracy of such predictions. Hooper and Zellner (1961) obtained the covariance...

This paper presents a method for selection of the optimal simultaneous equation system from a set of nested models under the condition of a small sample. The purpose of selection is to identify a model with the best prognostic possibilities. Multivariate AIC, BIC and AICC are used as the...

A central feature of innovation systems is that innovation arises from interaction between organizational units. This requires 'cognitive distance' that is sufficiently large to yield novelty of combinations, but not too large for mutual understanding. Two problems and solutions in the transfer...

This note sketches opportunities for interdisciplinary research in management, and the distinctive contribution that might be made from a European perspective. It highlights a few major domains of research, conceptual issues, disciplines, and specific opportunities and needs in Europe. The...

In an attempt at a systematic theory of entrepreneurship, this paper connects various literatures, from economics and business. In economics, there are many notions of entrepreneurship, some of which seem to contradict each other. For example, there are notions of entrepreneurship as an...

This article connects theory of learning with theory of governance, in the context of inter-firm relations. It recognizes fundamental criticism of transaction cost economics (TCE), but preserves elements from that theory. Two kinds of relational risk are identified: hold-up and spillover risk....

Increasingly, it has been recognised that in their process of internationalisation multinationals may learn. They may take a strategy not only of exploitation, to leverage existing assets, competencies and products, built up in their home countries, but also, and perhaps even primarily, of...

Transaction cost economics faces serious problems concerning the way it deals, or fails to deal, with bounded rationality, the efficiency of outcomes, trust, innovation, learning and the nature of knowledge. The competence view yields an alternative perspective on the purpose and boundaries of...

This paper connects theory of learning with theory of governance, in the context of inter-firm relations. It recognizes fundamental criticism of transaction cost economics (TCE), but preserves elements from that theory. The theory of governance used incorporates learning and trust. The paper...