Rational exchange and trust: Business relationships in a fishing community

This paper assesses the hypothesis that in markets where information is lacking concerning the price and the quality of a commodity and the commodity is variable in its supply, sellers will tend to form long‐term, stable relationships with buyers. Data from a coastal Alabama community are used to test the nature of exchange relations between commercial shrimp fishers and the dealers to whom they sell. It is further hypothesized that the social aspects of these exchanges will better predict stable relationships than will economic aspects. The evidence presented supports the stated hypotheses. Finally, the relevance of this research for social theory is discussed.