Social Relationships and Trust

@article{Binzel2010SocialRA,
  title={Social Relationships and Trust},
  author={Christine Binzel and Dietmar Fehr},
  journal={Behavioral & Experimental Economics eJournal},
  year={2010}
}
While social relationships play an important role for individuals to cope with missing market institutions, they also limit individuals' range of trading partners. This paper aims at understanding the determinants of trust at various social distances when information asymmetries are present. Among participants from an informal housing area in Cairo we find that the increase in trust following a reduction in social distance comes from the fact that trustors are much more inclined to follow their… Expand
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