Motivated by studies that show overconfident agents are more competitive, we test whether overconfident CEOs respond differently and perform better when competition increases. Using tariff reductions as exogenous shocks to competition and a triple-difference specification on matched samples, we...

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

We develop a simple theoretical model of a long term buyer-supplier relationship with non-contractible buyer specific R&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement strategies. We address these issues empirically...

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

Economic sociologists have concluded that social embeddedness, characterized by trust and reciprocity, is widespread in organization-to-organization exchange. There remains, however, a tension between theorists who pose trust as an alternative logic to asocial price negotiations or contractual...

We find a strong positive relationship between entrepreneurs' home-county social capital and their crowdfunding performance on Kickstarter. We exploit a quasi-experiment based on a Kickstarter rule change that strengthens entrepreneurs' obligation to provide backers with the promised rewards and...

Economic research has long focused on how individual behavioral biases can create spillover effects. In this paper, we consider why CEO overconfidence impacts other firms in the supply chain. Using data on supplier-customer relationships, we examine how suppliers respond to overconfident...

We develop a simple theoretical model of a long term buyer-supplier relationship with non-contractible buyer specific R&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement strategies. We address these issues empirically...