Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/93811 
Year of Publication: 
2011
Series/Report no.: 
SFB/TR 15 Discussion Paper No. 349
Publisher: 
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY), München
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-buyertrust, tha thigher 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.
Subjects: 
Trust
Hold-up problem
Competition
Speci?c investment
Suppliers
Car manufacturers
German automotive industry
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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