capital does play a role: high levels of trust loosen credit conditions by lowering interest rates, but this benefit is not …

Trust is vital for market development, but how can trust be enhanced in a marketplace? A common view is that more … trusting may help to build trust, especially in less developed economies. In this paper, we argue that more trusting may lead … to less trust. We set up a rational expectation model in which a marketplace uses buyer protection to promote buyer …