examine the impact of empowering investors with the right to veto the investee’s profit distribution on trust and … trust by over 30% in both cases. To control for a treatment sequence effect, we conducted the experiment in a reverse order …. We observe a comparable loss in trust when the power to veto is removed. Further analysis of veto decisions indicates …

incomplete information) and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent … agents who may not act in a way the principal believes is in the principal’s best interest, trust and investment increases … opaque environments, the loss of empowerment has a substantially greater negative effect on trust than the positive effect …

incomplete information) and empowerment on trust and trustworthiness. We implement a simple version of the standard two …'s best interest, the level of trust and investment increases over that which is realized in the absence of empowerment … greater negative effect on trust than the positive effect associated with the introduction of empowerment. …