CORDIS Project
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This project explores the role of social capital in enforcing informal economic arrangements through social sanctions. It aims to model social sanctions' mechanisms and their impact on agreements, particularly in contexts like microfinance and collective action.
In the absence of formal contracts and sanctioning agencies, many economic exchanges are based on informal arrangements that cannot be enforced through courts or monitored by external parties.
In this project, we study the role of social capital in generating social sanctions that agents can use to enforce informal arrangements.
Typically, in the literature, social sanctions are posited parametrically, and are supposed to be used unilaterally whenever there is a breach in the contract .
They ar…
UNIVERSITE DE NAMUR
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