Trust and the Law

Publication Year:
2017
Usage 49
Downloads 40
Abstract Views 9
Repository URL:
https://digitalwindow.vassar.edu/faculty_research_reports/100
Author(s):
Ho, Benjamin; Huffman, David
Tags:
Trust; Law; Economics; Apologies
paper description
This chapter provides a selective review of the literature on trust and the law. We highlight the psychological and game theoretic mechanisms underpinning the role of trust in relationships with incomplete contracts. We also discuss evidence on whether behavioral trust and the strength of legal institutions act as substitutes or complements for the purposes of overcoming moral hazard.