The influences of trust and time horizon on the robustness of cooperation have been widely recognized. Nonetheless, separate streams of literature in social science have differentially emphasized these two constructs. The authors examine the conjoint influences of trust and time dimension on cooperation and show that trust and time dimension jointly determine the level of apprehension and temptation in a relationship, which, in turn, moderate fear and greed, respectively. Understanding how apprehension and temptation work in a relationship helps to answer the following questions: How do trust and time horizon influence greed and fear and hence cooperation? How sensitive are apprehension and temptation with respect to changes in trust and time horizon? Why are trust and time horizon individually necessary but not sufficient for cooperation?
One of the most notable business trends in recent years has been the surge in alliance formation. Globalization, escalating R&D expenses, shortening product life cycles, and convergence of technologies are often cited as important factors that contribute to this phenomenon. This article develops a framework for multi-firm alliances. Multi-firm alliances can be classified on the basis of distinct payoff structures, leading to critical differences in their predicted development and final result. This article presents four multi-firm alliance game scenarios to describe the dynamics that underlie the interactions among firms and provides industry examples. It offers a number of lessons to help managers improve their ability to manage multi-firm alliance relationships.
Organizational Behavior and Human Decision Processes
This paper builds a simple analytical model to help crystallize the often fuzzy concept of trust. Altogether, seven properties of trust are derived. The findings lend support to some well-accepted views on trust yet shed new light on other interesting properties of trust. In particular, it is shown that trust supports cooperation through its impact on two main threats to cooperation, namely fear and greed.