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 … contract enforcement are complements. We demonstrate that under weak contract enforcement trust has no effect on gains from …

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 … contract enforcement are complements. We demonstrate that under weak contract enforcement trust has no effect on gains from …

two economically equivalent contracts - a fixed-term renewable and an open-ended at-will contract. Each contract provides … contract type. However, when both contracts are available offering a fixed-term instead of an open-ended contract is perceived …We investigate how payoff-irrelevant terms can negatively impact relational contracts. In a lab experiment we compare …