There is a general presumption that social preferences can be ignored if markets are competitive. Market experiments … (Smith 1962) and recent theoretical results (Dufwenberg et al. 2008) suggest that competition forces people to behave as if … hold when uncertainty is important (financial markets) or when incomplete contracts are traded (labor markets). Social …

-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …

The paper studies competition for the market in a setting where incumbents (and, to a lesser extent, neighboring …