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Abstract
In a typical contract farming arrangement, a firm contracts a farmer to deliver a certain quantityquality
combination of a product at a certain point in time for payment at a specified price based on
quality attributes. These arrangements tend to be subject to lack of ‘trust’ on both sides, since they
typically are subject to asymmetric information because quality attributes are unobservable and
costly to assess. We conducted variants of framed trust games using contract dairy farmers in
Vietnam as first movers to assess (1) baseline trust between these farmers and the firm that contracts
them and (2) the impact of potential collusion between the firm and a third party on trust. While
farmers are more likely to trust in the presence of the third party, potential collusion does not
significantly reduce their propensity to trust. We discuss the external validity of our findings and
some implications for policy.