Abstract:Economists, including agricultural economists, have a long history of recognizing the importance of the behavioral foundations in decision making while ignoring these observable human dimensions in their economic models. The economics of social capital and trust, two important human characteristics influencing decisions, have captured the attention of economists in recent years. Recent empirical work demonstrates that social capital and trust considerations are prevalent and economically significant, especially in business. Trust alters the terms of trade, generates decision flexibility, reduces transaction costs, and creates additional time resources for management.

　　Subjects:Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets ; Relation of Economics to Other Disciplines ; Economic Sociology; Economic Anthropology; Social and Economic Stratification

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