Helping somebody may undermine his incentives to work. What Buchanan identified more than 25 years ago as the Samaritan's dilemma is basically a time-inconsistency problem. The paper discusses possible solutions of the dilemma such as punishment within an iterated game, reshaping the game in the...

In this paper we analyze whether trust can overcome the contractual hazards caused by the territoriality of law, how effective trust is and what the impact is on the sequential structure of trade. The paper contributes to the New Institutional Economics of International Transactions (NIEIT).