The management of matches : A research program on solidarity in durable social relations
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We outline a research program on solidarity in matches, i.e. durable social relations between two or, to generalize slightly, a few parties. Examples of matches include relations between natural persons such as households as well as corporate actors such as research and development alliances, or buyer-supplier relations between firms. A typical feature of matches is that the partners are interdependent with partly common and partly conflicting interests. This interdependence induces risks. A paradigmatic risk and a classical example of solidarity problems is that cooperation in matches is often problematic: realizing the joint interests of the partners requires cooperation which is problematic due to individual incentives for opportunism. Trust problems are a typical case and the Prisoner's Dilemma is a well-known formal model of these risks. We discuss how rational, i.e. incentive-guided and goal-directed actors cope with risks, or how they manage their match. In particular, we highlight how the assumption of rational behavior, together with assumptions on the social embeddedness of matches and transactions in matches, can be used to generate hypotheses on the management of cooperation problems.