Cookies?
Library Header Image
LSE Research Online LSE Library Services

Competition and trust: evidence from German car manufacturers

Felli, Leonardo, Koenen, Johannes and Stahl, Konrad O (2011) Competition and trust: evidence from German car manufacturers. CEPR discussion papers (8265). Centre for Economic Policy Research (Great Britain), London, UK.

Full text not available from this repository.

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.

Item Type: Monograph (Working Paper)
Official URL: http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=8...
Additional Information: © 2011 The Authors
Divisions: Economics
STICERD
Financial Markets Group
Subjects: H Social Sciences > HB Economic Theory
JEL classification: D - Microeconomics > D2 - Production and Organizations > D20 - General
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L62 - Automobiles; Other Transportation Equipment
Date Deposited: 12 Apr 2011 14:15
Last Modified: 13 Sep 2024 20:18
URI: http://eprints.lse.ac.uk/id/eprint/35449

Actions (login required)

View Item View Item