This paper is a reply to Barry Ickes' critique of my paper "Trust versus Illusion: What is Driving Demonetization in … Russia?" in which I show that the data reject Barry Ickes' Virtual Economy explanation of barter in Russia in favor of an … institutional explanation based on the lack of trust. …

The virtual economy argument for Russia suggests that barter allows the parties to pretend that the manufacturing … alternative explanation which sees this pricing behavior as a mechanism to deal with the absence of trust and financial discipline …

The virtual economy argument for Russia suggests that barter allows the parties to pretend that the manufacturing … offer a model which sees this pricing behavior as a mechanism to deal with the absence of trust and liquidity in the economy …

The virtual economy argument for Russia suggests that barter allows the parties to pretend that the manufacturing … transaction. We offer a model that sees this pricing behaviour as a mechanism to deal with the absence of trust and liquidity in …

- specifically the trust environment - and its internal structure. We show experimentally that exogenously imposed culture … endogenously leads to variation in organizational form. We prime trust using past performance from a pilot study and demonstrate … that the level of trust within an organization affects division of labor and consequently organizational productivity. This …