| Abstract: | Markets induce trust through repeat dealing and the development of reputation. Organisations economise on the use of trust through the appropriate assignment of ownership rights. Trust is not therefore simply a useful'outside'entity which economic analysis takes for granted. The production and'allocation'of trust are, at least partially, an outcome of the operation of the economic system. An important'unintended consequence'of government regulation which does not attract sufficient study and comment is the implicit undermining of trust-inducing market mechanisms and organisational structures. |
