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Cooperation, Contracts and Social Networks: From a Bounded to a Procedural Rationality Approach

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  • Camille Chaserant

Abstract

The idea of this paper is that ifdecision-making processes are more consideredin a procedural rationality assumption, thenthe interplay of trust and calculativereasoning, and, at a more collective level, theinterplay of contracts and social networks maybe clarified. We use Lindenberg's framingtheory to define enlightened self-interest asthe rationality of contractual relationships.Cooperation is then explained by thewillingness to pursue the relationship which,from the background, decreases the salience ofthe gain frame. This willingness is supportedby a process of mutual relational signaling.When temptations of opportunism are strong,cooperation needs to be embedded, first in aformal contract and then, if stakes are toohigh, in a social network. In this framework,we show that the acceptance of contractualincompleteness by the parties is a positivesignal, which favors cooperation. Copyright Kluwer Academic Publishers 2003

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  • Camille Chaserant, 2003. "Cooperation, Contracts and Social Networks: From a Bounded to a Procedural Rationality Approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 7(2), pages 163-186, June.
    • Handle: RePEc:kap:jmgtgv:v:7:y:2003:i:2:p:163-186
    DOI: 10.1023/A:1023620127268
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    References listed on IDEAS

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    Cited by:

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    2. Olivier Thevenon & Philippe Batifoulier, 2003. "L'éthique (médicale) est elle soluble dans le calcul économique?," Post-Print hal-00442960, HAL.
    3. Vosselman, E.G.J. & van der Meer-Kooistra, J., 2004. "Accounting for the alignment of interest and commitment in interfirm transactional relationships," ERIM Report Series Research in Management ERS-2004-095-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Yvonne Joyce, 2020. "Building Trust in Crisis Management: A Study of Insolvency Practitioners and the Role of Accounting Information and Processes," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1622-1657, September.
    5. Dadan Wardhana & Rico Ihle & Wim Heijman, 2020. "Farmer cooperation in agro‐clusters: Evidence from Indonesia," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 725-750, October.
    6. Vosselman, Ed & Meer-Kooistra, Jeltje van der, 2009. "Accounting for control and trust building in interfirm transactional relationships," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 267-283, February.

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