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Art
AUTHOR:
Dieter Schmidtchen
TITLE:
Vertrauen und Recht: eine ökonomische Analyse
SUGGESTED CITATION:
Dieter Schmidtchen
(2001)
"Vertrauen und Recht: eine ökonomische Analyse",
German Working Papers in Law and Economics:
Vol. 2001:
Article 12.
http://www.bepress.com/gwp/default/vol2001/iss1/art12
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ABSTRACT:
In this article a simple game is used to develop a concept of trust that takes account of boundedly rational behavior. Even if a first mover in a sequential game is protected against opportunism by legal means or means of private ordering there remains a risk that the second mover does not perform as promised. Trust consists of accepting this risk. The paper also discusses the efficiency of trust and the role of the law in separating trustworthy from non trustworthy people.