@techreport{Felli2011Competition,
abstract = {We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher levels of trust mitigate relationship-specific underinvestment in a classical hold-up situation. Moreover, contrary to the extant literature, we show that higher levels of supplier's trust are reflected in the buyer's choice of a more competitive procurement strategy among potential suppliers.},
address = {M\"{u}nchen},
author = {Leonardo Felli and Johannes Koenen and Konrad O. Stahl},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D86; D22; L22; L62; 330; trust; hold-up problem; competition; specific investment; suppliers; car manufacturers; German automotive industry; Kraftfahrzeugindustrie; Kraftfahrzeugzulieferer; Lieferanten-Kunden-Beziehung; Vertrauen; Sunk Costs; Wettbewerb; Beschaffungsplanung; Deutschland},
language = {eng},
number = {3358},
publisher = {CESifo},
title = {Competition and trust: Evidence from German car manufacturers},
type = {CESifo working paper: Industrial Organisation},
url = {http://hdl.handle.net/10419/46503},
year = {2011}
}
