Karlan, Dean; Mobius, Markus; Rosenblat, Tanya; Szeidl, Adam - In: The Quarterly Journal of Economics 124 (2009) 3, pp. 1307-1361
This paper builds a theory of trust based on informal contract enforcement in social networks. In our model, network connections between individuals can be used as social collateral to secure informal borrowing. We define network-based trust as the largest amount one agent can borrow from...