Department or Program
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.
Ho, Benjamin and Huffman, David, "Trust and the Law" (2017). Faculty Research and Reports. 100.