THE EMERGENCE OF EXCHANGE STRUCTURES - AN EXPERIMENTAL-STUDY OF UNCERTAINTY, COMMITMENT, AND TRUST

An experiment is used to investigate the effects of uncertainty on patterns of exchange. The role of reputation as an important factor related to the formation of stable exchange relations is examined. In addition, some of the consequences of different patterns of exchange-in particular, how different exchange conditions lead to different levels of trust among trading partners-are investigated. The results of the experiment indicate significant differences in the level of commitment, concern for one's own and others' reputation, and the level of trust that emerge when uncertainty (in the form of information asymmetries) is varied.