Bartling, Björn; Fehr, Ernst; Huffman, David; Netzer, Nick - 2024 - Revised version, October 2024
explores an unstudied question: whether trust is a substitute for, or a complement to, the availability of contract enforcement … opportunities. One intuition suggests that trust becomes more important when contract enforcement is weak, implying that they are … substitutes. We show, however, that trust can be a complement, mattering more when contract enforcement is stronger. Our evidence …