Empirical approaches to trust and relational contracts

Macchiavello, R.ORCID logo & Morjaria, A. (2022). Empirical approaches to trust and relational contracts. International Journal of Industrial Organization, 84, https://doi.org/10.1016/j.ijindorg.2022.102849
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Broadly speaking, economists have studied trust in two somewhat distinct ways. One approach is best captured by notions of generalized trust; another approach places trust at the core of relational contracts. After reviewing two empirical approaches to the study of relational contracts, we provide a preliminary attempt to bridge these two strands of the literature in the context of Rwanda’s coffee supply chain.

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