id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
citeseerx-ist-psu-edu-7514		CiteSeerX — Contracting with uncertain level of trust			.html	application/xhtml+xml	398	57	53	CiteSeerX — Contracting with uncertain level of trust author = {Sviatoslav Braynov}, The paper investigates the impact of trust on market efficiency and bilateral contracts. In other words, complete trustworthiness is not a necessary condition for market efficiency. We prove that distrust could significantly reduce market efficiency, and we show how to solve the problem by using appropriately designed multiagent contracts. It is shown that if the seller's trust equals the buyer's trustworthiness, then the social welfare, the amount of trade, and the agents ' utility functions are maximized. The paper also studies the efficiency of advance payment contracts as a tool for improving trustworthiness. It is proved that advance payment contracts maximize the social welfare and the amount of trade. The analysis and the solutions proposed in this paper could help agent designers avoid many market failures and produce efficient interaction mechanisms.	./cache/citeseerx-ist-psu-edu-7514.html	./txt/citeseerx-ist-psu-edu-7514.txt