Bartling, Björn; Fehr, Ernst; Huffman, David; Netzer, Nick - 2021 - Revised version
Under weak contract enforcement the trading parties’ trust, defined as their belief in other’s trustworthiness, appears … appear less important, suggesting that trust and contract enforcement are substitutes. Here we show, however, that trust and … under weak contract enforcement trust has no effect on gains from trade, but when we successively improve contract …
