Relational Contracts and Trust in a High-Tech Industry

Arbeitspapier

We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher quality of the automotive parts and more competition among suppliers. Yet both effects hold only for parts involving unsophisticated technology, not when technology is sophisticated. We rationalize these findings within a relational contracting model that critically focuses on changes in the bargaining power, due to differences in the costs of switching suppliers.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 9362

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economics of Contract: Theory ; Transactional Relationships; Contracts and Reputation; Networks ; Automobiles; Other Transportation Equipment; Related Parts and Equipment ; Intellectual Property and Intellectual Capital
• Thema: relational contracts ; hold-up ; buyer-supplier contracts ; bargaining power

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Calzolari, Giacomo ; Felli, Leonardo ; Koenen, Johannes ; Spagnolo, Giancarlo ; Stahl, Konrad O.
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/248907