This chapter reviews some key points in the analysis of trust, based on Nooteboom (2002)i.The following questions are addressed.What can we have trust in?What is the relation between trust and control?What are the sources of trust? And what are its limits?By what process is trust built up and...

We study strategic interaction between agents who distill the complex world around them into simpler situations. Assuming agents share the same cognitive frame, we show how the frame affects equilibrium outcomes. In one-shot and repeated interactions, the frame causes agents to be either better...

The widespread implementation of customer relationship management (CRM) technologies in business has allowed companies to increasingly focus on both acquiring and retaining customers. The challenge of designing incentive mechanisms that simultaneously focus on customer acquisition and customer...

Using an incentivized laboratory experiment, we investigate whether and how partnership agreements affect partners’ contributions levels. We find that the two most common real-life practices, the lockstep agreement (where all surplus is shared equally) and the performance-based agreement...

Historically, European team sports leagues were run by their respective national and international associations and were legally independent from the professional clubs playing in these leagues. Recently, European leagues have adopted an organizational form similar to their North American...

We consider a partnership game with two roles in which a large population of firms interact to carry out, say, R&D joint ventures. The partners have to build a common-property asset through a sequence of costly investments. Firms have access to a monitoring technology whose cost depends on the...