Relationships between Institutional Economics of Cooperation and the Political Economy of Trust

Abstract

The aim of this paper is to analyse the relationship between institutional economics of cooperation and the political economy of trust. Transactions costs, principal-agent theory, market power, increasing-returns theory and value creation, strategic management: competitive forces, resource-based theory, organisational knowledge and learning, strategic choice theory and collective efficiency theory are reviewed. Lastly, the political economy of trust is sustained.