IDEAS home Printed from https://ideas.repec.org/p/tiu/tiutis/e910a5d9-5939-4d45-b940-945df7a6de24.html
   My bibliography  Save this paper

Trust in the Shadow of the Courts

Author

Listed:
  • Brennan, G.
  • Güth, W.
  • Kliemt, H.

Abstract

Even if contract enforcers are as opportunistic as ordinary traders, a system of adjudication can increase the degree to which contractual obligations on large anonymous markets are fulfilled. Only if arbitrators receive a fixed income, occasional mistakes will not favour the untrustworthy. It can be shown that the presence of the courts may further the prospects of the trustworthy in a large class of situations. But under non-optimal court policies and unfavorable parameter constellations introducing courts may crowd out trustworthiness.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Brennan, G. & Güth, W. & Kliemt, H., 1997. "Trust in the Shadow of the Courts," Other publications TiSEM e910a5d9-5939-4d45-b940-9, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:e910a5d9-5939-4d45-b940-945df7a6de24
    as

    Download full text from publisher

    File URL: https://pure.uvt.nl/ws/portalfiles/portal/527568/89.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, vol. 107(443), pages 1043-1053, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gãœth, Werner & Ockenfels, Axel, 2005. "The coevolution of morality and legal institutions: an indirect evolutionary approach," Journal of Institutional Economics, Cambridge University Press, vol. 1(2), pages 155-174, December.
    2. Güth Werner & Kliemt Hartmut & Peleg Bezalel, 2000. "Co-evolution of Preferences and Information in Simple Games of Trust," German Economic Review, De Gruyter, vol. 1(1), pages 83-110, February.
    3. Fali Huang, 2007. "Building Social Trust: A Human-Capital Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 552-573, December.
    4. Robert E. Goodin, 2000. "Trusting Individuals Versus Trusting Institutions," Rationality and Society, , vol. 12(4), pages 381-395, November.
    5. Marian Panganiban, 2015. "To friends everything, to strangers the law? An experiment on contract enforcement and group identity," Jena Economics Research Papers 2015-015, Friedrich-Schiller-University Jena.
    6. Geoffrey Brennan & Giuseppe Eusepi, 2013. "Buchanan, Hobbes and contractarianism: the supply of rules?," Chapters, in: Francisco Cabrillo & Miguel A. Puchades-Navarro (ed.), Constitutional Economics and Public Institutions, chapter 2, pages 17-34, Edward Elgar Publishing.
    7. Kirchgässner, Gebhard, 2010. "On minimal morals," European Journal of Political Economy, Elsevier, vol. 26(3), pages 330-339, September.
    8. Werner Gueth & Axel Ockenfels, 2000. "Evolutionary Norm Enforcement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(2), pages 335-335, June.
    9. Hartmut Kliemt, 2010. "The PPE enterprise: Common Hobbesian roots and perspectives," Politics, Philosophy & Economics, , vol. 9(4), pages 398-410, November.
    10. Paul G. Mahoney, 1998. "Trust and Opportunism in Close Corporations," NBER Working Papers 6819, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars P. Feld & Benno Torgler, 2007. "Tax Morale after the Reunification of Germany: Results from a Quasi-Natural Experiment," CREMA Working Paper Series 2007-03, Center for Research in Economics, Management and the Arts (CREMA).
    2. Andrew E. Clark, 2011. "The Organisational Commitment of Workers in OECD Countries," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 22(1), pages 8-27.
    3. Christoph Engel & Luigi Mittone & Azzurra Morreale, 2024. "Outcomes or participation? Experimentally testing competing sources of legitimacy for taxation," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 563-583, April.
    4. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    5. Bruno S. Frey & Alois Stutzer, 2006. "Environmental Morale and Motivation," CREMA Working Paper Series 2006-17, Center for Research in Economics, Management and the Arts (CREMA).
    6. Heugens, P.P.M.A.R. & Kaptein, S.P. & van Oosterhout, J., 2007. "Contracts to Communities: A Processual Model of Organizational Virtue," ERIM Report Series Research in Management ERS-2007-023-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Stadelmann, David & Portmann, Marco & Eichenberger, Reiner, 2013. "How do Female Preferences Influence Political Decisions by Female and Male Representatives?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79748, Verein für Socialpolitik / German Economic Association.
    8. Silverman, Dan & Slemrod, Joel & Uler, Neslihan, 2014. "Distinguishing the role of authority “in” and authority “to”," Journal of Public Economics, Elsevier, vol. 113(C), pages 32-42.
    9. Orviska, Marta & Hudson, John, 2003. "Tax evasion, civic duty and the law abiding citizen," European Journal of Political Economy, Elsevier, vol. 19(1), pages 83-102, March.
    10. Francois, Patrick, 2000. "'Public service motivation' as an argument for government provision," Journal of Public Economics, Elsevier, vol. 78(3), pages 275-299, November.
    11. Bruno S. Frey, 2003. "Flexible Citizenship for a Global Society," Politics, Philosophy & Economics, , vol. 2(1), pages 93-114, February.
    12. Simon Gaechter, 2006. "Conditional cooperation: Behavioral regularities from the lab and the field and their policy implications," Discussion Papers 2006-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    13. Bruno S. Frey & Alois Stutzer, "undated". "Direct Democracy: Designing a Living Constitution," IEW - Working Papers 167, Institute for Empirical Research in Economics - University of Zurich.
    14. Franz Hackl & Martin Halla & Gerald Pruckner, 2012. "Volunteering and the state," Public Choice, Springer, vol. 151(3), pages 465-495, June.
    15. Bazart, C. & Bonein, A., 2014. "Reciprocal relationships in tax compliance decisions," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 83-102.
    16. Gail Pacheco & Thomas Lange, 2010. "Political participation and life satisfaction: a cross‐European analysis," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(9), pages 686-702, August.
    17. Chad M. Baum & Christian Gross, 2017. "Sustainability policy as if people mattered: developing a framework for environmentally significant behavioral change," Journal of Bioeconomics, Springer, vol. 19(1), pages 53-95, April.
    18. Silvia Sacchetti, 2015. "Inclusive and Exclusive Social Preferences: A Deweyan Framework to Explain Governance Heterogeneity," Journal of Business Ethics, Springer, vol. 126(3), pages 473-485, February.
    19. Orviska, Marta & Caplanova, Anetta & Medved, Jozef & Hudson, John, 2006. "A cross-section approach to measuring the shadow economy," Journal of Policy Modeling, Elsevier, vol. 28(7), pages 713-724, October.
    20. Frey, Bruno S., 2004. "Direct Democracy for a Living Constitution," Freiburg Discussion Papers on Constitutional Economics 04/5, Walter Eucken Institut e.V..

    More about this item

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tiu:tiutis:e910a5d9-5939-4d45-b940-945df7a6de24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richard Broekman (email available below). General contact details of provider: https://www.tilburguniversity.edu/about/schools/economics-and-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.