We study the intrapersonal relationship between trust and reciprocity in a laboratory experiment. Reciprocal subjects trust significantly more than selfish ones. This finding raises questions about theories of social preferences which predict that "fairer" players should trust less.

How should firms react to customer complaints after an unsatisfactory purchase? In a field experiment, we test the effect of different reactions and find that a cheap-talk apology yields significantly better outcomes for the firm than offering a monetary compensation.

We experimentally demonstrate how "unpacking" provides a possible approach for mitigating the dilemma of public goods provision through private contributions. Subjects' total contributions increase when a single public good is split into two identical public goods.