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Courts and Relational Contracts

Post-communist countries offer new evidence on the relative importance of courts and relationships in enforcing contracts. Belief in the effectiveness of courts has a significant positive effect on the level of trust shown in new relationships between firms and their customers. Well-functioning courts also encourage entrepreneurs to try out new suppliers. Courts are particularly important when specific investments are needed for a relationship to develop. While relationships can sustain existing interactions, workable courts help new interactions to start and develop
Year of publication:
[2021]
Authors: Johnson, Simon ; McMillan, John ; Woodruff, Christopher
Publisher: [S.l.] : SSRN
Subject: Vertrag | Contract | Gerichtsbarkeit | Court system | Rechtsdurchsetzung | Law enforcement | Lieferantenmanagement | Supplier relationship management | Unvollständiger Vertrag | Incomplete contract | Lieferantenkredit | Trade credit | Transformationsstaaten | Transition countries
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