I think both trends are happening at he same time. The reduction of the overall transaction cost means not only that things that were too expensive to outsource before can now cheaply be outsourced – which gives rise to the commodification debate started by Branko Milanović. We have the opportunity to become suppliers and make money of stuff we couldn’t before, and we can, as buyers, expect to save money.

But it also means that transactions that do rely on trust can find a wider market – like craft beers.

The key determinant is the nature of the relationship: is it one-off or is it repeated. The evolving economy provides new opportunities for both.

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Accidental behavioural economist in search of wisdom. Uses insights from (behavioural) economics in organization development. On Twitter as @koenfucius

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