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Trade, Trust And The Territoriality Of The Law

Author

Listed:
  • Schmidtchen, Dieter
  • Neunzig, Alexander R.

Abstract

In this paper we analyze whether trust can overcome the contractual hazards caused by the territoriality of law, how effective trust is and what the impact is on the sequential structure of trade. The paper contributes to the New Institutional Economics of International Transactions (NIEIT).

Suggested Citation

  • Schmidtchen, Dieter & Neunzig, Alexander R., 1997. "Trade, Trust And The Territoriality Of The Law," CSLE Discussion Paper Series 97-05, Saarland University, CSLE - Center for the Study of Law and Economics.
    • Handle: RePEc:zbw:csledp:9705
    as

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    File URL: https://www.econstor.eu/bitstream/10419/23096/1/9705tttl.pdf
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    References listed on IDEAS

    as
    1. Kronman, Anthony T, 1985. "Contract Law and the State of Nature," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 5-32, Spring.
    2. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    3. Pomery, John, 1984. "Uncertainty in trade models," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 9, pages 419-465, Elsevier.
    4. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
    5. Clay, Karen, 1997. "Trade without Law: Private-Order Institutions in Mexican California," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(1), pages 202-231, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    international contract enforcment; trust game; bounded rationality;
    All these keywords.

    JEL classification:

    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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