Lock-in effects make trust essential to ongoing subcontracting relations

Evidence

Given the possibility of opportunistic behaviour, trust is an essential ingredient in intermediate product subcontracting in so far as the two firms are locked into the relation. By lock-in effects I mean not only that the mutual benefits will be achieved only if trade takes place, but that the identity of the partners counts. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2527

Categorization

  • QUESTION: The paragraph cuts off mid-sentence at ‘not only that’ — the actual content of the lock-in definition is in the next paragraph. Pulling just this fragment leaves the definition hanging.