@TechReport{iza:izadps:dp12398,
            	author={Munoz-Herrera, Manuel and Reuben, Ernesto},
            	title={Business Culture: The Role of Personal and Impersonal Business Relationships on Market Efficiency},
            	year={2019},
	month={Jun},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12398},
            	url={https://www.iza.org/index.php/publications/dp12398},
	abstract={In this paper, we study the effects of business culture on market efficiency. We exogenously vary the type of business culture between business-is-business cultures, which consist on impersonal relationships where financial matters are paramount, and business-is-family cultures, which comprise of cohesive personal relationships where financial matters and personal attachments are intertwined. We use a laboratory experiment to assess the effect of business cultures in environments with different degrees of contract enforceability and competition. Our main results indicate that business-is-family cultures are more effective when contracts are unverifiable because they help market participants overcome problems of trust. On the other hand, we find that business-is-business cultures are more effective in competitive settings because they facilitate the severance of ties with unproductive partners. },
	keywords={trust;contracts;competition;business culture;communication;social ties},
            }