Trust in triads: An experimental study

Pairs of trustors play finitely repeated Trust Games with the same trustee in a laboratory experiment. We study trustfulness of the trustor and trustworthiness of the trustee. We distinguish between learning and control effects on behavior. Learning effects are related to the trustor's information on past behavior of the trustee. Control effects are related to the trustor's opportunities for sanctioning a trustee in future interactions. Hypotheses on learning and control effects are derived from backward-looking learning models and from forward-looking models of strategic behavior. The design of the experiment, with respect to trustfulness, allows for disentangling learning effects from a trustor's own experience with the trustee and learning effects through third-party information. Also, the design enables disentangling control effects on trustworthiness and trustfulness through a trustor's own sanction opportunities and opportunities for third-party sanctions. We find evidence for learning and control effects. The trustor's own experiences, the experiences of the other trustor, as well as the trustor's own sanction opportunities affect trustfulness. We find evidence for control effects on trustworthiness, including effects arising from opportunities for third-party sanctions. However, there is no evidence for control effects through opportunities for third-party sanctions on trustfulness. This could indicate limited strategic rationality of trustors.     

Trust and embedded markets: A multi-method investigation of consumer transactions

Previous work shows that, as the buyer's uncertainty about the quality of some good or service increases, so does the tendency to purchase that good or service via embedded transactions, rather than from strangers. While this previous work explains variation in embedded exchange across different types of purchases, it does not address variation in embedded exchange across persons. Our research integrates the embeddedness and trust literatures to explain variation in within-network exchanges based on an interaction of the purchaser's generalized trust and the level of uncertainty entailed in the purchase (i.e., whether there exists an incentive for the seller to misrepresent the quality of some good or service). For purchases involving uncertainty, low-trusters will tend to forgo risky transactions with strangers, opting instead for the increased certainty of embedded markets. High-trusters, on the other hand, will be more likely to transact with strangers (despite the increased risk), from whom they can often find better deals. We should not expect any differences between high- and low-trusters for products that do not entail uncertainty. Results from two data sources, responses from a nationally representative survey of the U.S. population and behavioral responses in new laboratory experiments, provide support for the arguments.     

“We Actually Trust the Community:” Examining the Dynamics of a Nonprofit Funding Relationship in New Zealand

Funding relationships in nonprofit management are increasingly defined by a philosophy of rational management, characterized by measurement of outputs and benchmarking, which represents an audit culture system (Burnley, Matthews, & McKenzie, 2005). There is concern that these approaches are constantly undermining the mission of community service nonprofit organizations (Darcy, 2002). In this research, we analyzed the management of funding relationships by examining dynamics within a nonprofit funding relationship in New Zealand. Through focus groups we explored the relationship between 17 representatives from nonprofit organizations and four Board members of a funding Trust. The management of this funding relationship was characterized by an appreciation of the diverse nature of nonprofit organizations, a balance between trust and control, and communication. We suggest that elements of these dynamics could be incorporated into nonprofit funding relationships in order to challenge an over-reliance on audit culture systems, and to re-establish relationships characterized by interaction between nonprofit organizations and their funders. Finally, we call for future research in this area.     

Trust and risk revisited

A trustor faces a risky choice in the trust game when he acts upon his belief regarding the chances of betrayal by the trustee. Despite intensive research there is no clear evidence for a link between lottery risk preferences and risk involved in trusting others. We argue that this is due to crucial differences between the risk measurements in the two settings. Trusting is giving up control to a human while lottery risk arises from a mechanistic randomization device. We propose a risky trust game that experimentally measures risk in the same context as the standard trust game, but nevertheless reduces the trust decision to objective risk. Our results show that transfers in the trust game can indeed be explained by individual risk attitudes elicited with the risky trust game, while lottery risk preferences have no explanatory power.     

Institutionalization of Trust as Response to Globalization: The Case of Consumer Cooperatives in South Korea

This paper explores an explanation which elaborates how individuals effectively enact and sustain trust in the sphere of social economy and the capability. I discuss how value employed by actors and the strategies and power relation in the socio-economic value sphere and focus on the function of ‘trust’ as the key mechanism of the interaction. This paper examine South Korean consumer cooperative Hansalim as a case of social economy which successfully institutionalize their system in competitive economic market arena.      

Social Capital,Interpersonal Trust,and Public Housing

Abstract

Addressing the relationship between housing tenure and social disadvantage, this research examines social capital among public tenants in Australia, concentrating on their level of interpersonal trust and confidence in a range of public institutions. Through multivariate analyses of national survey data it also profiles the social and political background of public housing tenants. As expected, public tenants tend to have lower incomes, lower levels of education, and working-class backgrounds, or do not identify with any class location at all. They are less likely to be married or in de facto relationships than people in other housing tenures, but are more likely to identify with the Australian Labor Party than with the Coalition parties. Although public housing tenants have access to secure and affordable housing, they appear to be generally less trusting than private renters or homeowners and exhibit less confidence in government institutions such as the Australian parliament. Public housing tenants express lower levels of interpersonal trust even controlling for a range of social background factors, suggesting that as a form of tenure, public housing in some ways exacerbates the disadvantage of tenants.     

“90后”大学生网络信任建构过程研究

网络信任是随着网络时代的来临而出现的新的信任类型,是网络社交发展到一定阶段的后天产物。其发生主体是切实的社会个体在网络空间形塑的虚拟角色,发生情境是个体互动所处的具体网络空间,其建构过程大致经历了初建、维系与深化、破裂、走向现实几个阶段。网络信任的建构过程不断涉及个人的认知与判断,信任决定的修正依据是个体在网络社交过程中逐渐暴露出的信息。网络信任的发生概率非常低,仅极少数的信任获得了稳定发展,甚至转变为现实信任。     

Trust and partner selection in social networks: An experimentally grounded model

This article investigates the importance of the endogenous selection of partners for trust and cooperation in market exchange situations, where there is information asymmetry between investors and trustees. We created an experimental-data driven agent-based model where the endogenous link between interaction outcome and social structure formation was examined starting from heterogeneous agent behaviour. By testing various social structure configurations, we showed that dynamic networks lead to more cooperation when agents can create more links and reduce exploitation opportunities by free riders. Furthermore, we found that the endogenous network formation was more important for cooperation than the type of network. Our results cast serious doubt about the static view of network structures on cooperation and can provide new insights into market efficiency.     

Trust as risk and the foundation of investment value

Trust is an essential ingredient of the investment process because investing is complex, the world contains irreducible uncertainty, and humans are naturally predisposed to cooperate. Traditional financial models inappropriately treat trust as probability or implicitly ignore it. This paper argues that trust has both cognitive and affective attributes that make it an important determinant of perceived investment risk. Specifically, perceived risk varies inversely with trust. This paper also discusses how trust offers a logical and parsimonious explanation for many financial asset pricing anomalies. Trust is the unseen faith underlying investment value.     

Trust between individuals and groups: Groups are less trusting than individuals but just as trustworthy

We compare the behavior of groups and individuals in a two-person trust game. The first mover in this game, the sender, receives an endowment and can send any part of it to the responder; the amount sent is tripled, and the responder can then return to the sender any portion of the tripled sum. In a 2 × 2 design, the players in the roles of sender and responder are either individuals or groups of three players (who conduct face-to-face discussions to decide on a collective group strategy). We find that groups in the role of sender send smaller amounts than individuals, and expect lower returns. In particular, groups send nothing more often than individuals do (and are even more likely to do so when the responder is another group). Groups and individuals in the role of responder return on average the same fraction of the amount sent. Hence, we conclude that groups are less trusting than individuals, but just as trustworthy.     

Trust responsiveness. On the dynamics of fiduciary interactions

Trust and trustworthiness are key elements, both at the micro and macro level, in sustaining the working of modern economies and their institutions. However, despite its centrality, trust continues to be considered as a “conceptual bumblebee”, it works in practice but not in theory. In particular, its behavioural rationale still represents a puzzle for traditional rational choice theory and game theory. In this paper “trust responsiveness”, an alternative explanatory principle that can account for trustful and trustworthy behaviour, is proposed. Such principle assumes that people can be motivated to behave trustworthily by trustful actions. The paper discusses the philosophical roots, the historical development, as well as the relational nature of this principle as well as its theoretical implications.     

Trust and recognition: a comparative study of client attitudes and workers' experiences in the welfare services

Since professional conduct is important in the lives of many people, trust and recognition between professionals and their clients are critical. Social professionals administer public resources on behalf of the welfare state, and their approaches and methods of intervention are mostly founded in current welfare policy. Despite this mandate, social professionals receive little acknowledgement and recognition. This article investigates the level of public trust in the Norwegian social services compared to the national insurance agencies, and to what extent the providers of these welfare services experience recognition and public approval. A central question is whether these aspects of external appreciation influence the professionals' motivation and feelings of accomplishment. Findings indicate that the social services receive less public support than the social insurance agencies, owing to the discretionary services provided and the stigma related to social assistance. The variation in institutional trust is reflected by the differences in workers' subjective experiences. That result notwithstanding, the service providers reveal a split view of themselves: while they experience themselves positively with respect to involvement and pride in their work, they also see themselves through the deprecating eyes of the public.     

Trust in the Internet as an experience technology

Trust in the Internet and related information and communication technologies - 'cybertrust' - could be critical to the successful development of 'e-services', such as e-government, e-commerce, e-learning and democratic participation in the rapidly expanding online public sphere. This paper explores trust in cyberspace based on an analysis of data from an Oxford Internet Survey conducted by the Oxford Internet Institute using a multi-stage, national probability sample in Great Britain. The paper highlights various perspectives on the meaning of trust and draws on findings from the Oxford Internet Survey to explore and refine key social determinants of cybertrust. Evidence from this research provides fresh insights into the factors shaping trust in the Internet, arguing that cybertrust, defined as a confident expectation, is influenced by experience, defined operationally by several indicators of proximity to the Internet, in ways shaped by educational background. The potential for using these results to better understand the role of trust on Internet use is addressed, as well as the more indirect implications for reinforcing digital divides.     

Trust and functional foods. New products,old issues

Trust in the "agro-food" sector has been declining in recent years reflecting a general decline of trust in traditional decision making processes. The introduction of new technologies in the production of foods re-introduces the problem of trust and highlights the parameters affecting its structure and direction. This paper discusses the issue of trust in relation to the introduction of functional foods into the market. Trust is assessed as both a philosophical and a psychological construct with particular emphasis on its communication aspects. The paper ends with specific recommendations for action in the agro-food sector. This paper partly reflects work done with Professor Cees Midden, Technical University of Eindhoven, as part of an expert technology assessment project for the Europaeische Akademie Bad Neuenahr Ahrweiler GmbH.     

Trust in surveys and games – A methodological contribution on the influence of money and location

This paper explores methods to study trust. In a variety of settings, answers to survey questions and choices in a trust game are obtained from student sample pools. Some subjects are approached by mail and execute their task at home whereas others participate in classroom experiments. No differences between the results obtained by these methods are observed. Furthermore, one additional group plays the trust game with purely hypothetical payments, and another receives random lottery payments. This changes trust behavior dramatically, whereas trustworthiness is unaffected. Subjects without any financial incentives exhibit less trust and their trust choices are significantly correlated with survey trust answers. There is no such correlation for the corresponding choices with real payments.     

“Trust Me”: Differences in expressed and perceived trust relations in an organization

The possibility of resolving the tension between trust as a psychological condition and trust as a general organizing principle depends on assumptions about the convergence of expressed and perceived trust relations. In empirical organizational research these assumptions are frequently left implicit and only rarely modeled directly. Using data that we have collected on trust relations within the top management team of a multiunit industrial group we specify and estimate multivariate exponential random graph models (ERGMs) that reveal important differences in the structural logics underlying networks of expressed and perceived trust relations. Results confirm that trust induces awareness and produces expectations of reciprocity – features that are consistent with the view of trust as a general organizing principle. Results also show that networks of perceived trust relations are characterized by tendencies toward reciprocity and generalized giving of trust. When multivariate network effects are introduced, however, expressed trust relations no longer show a significant tendency toward reciprocation. Interpreted together these results suggest that: (i) the distribution of expressed and perceived trust relations differs; (ii) expressed trust relations in organizations are more hierarchical than are perceived trust relations, and (iii) expressed and perceived trust relations need to be modeled jointly. These findings suggest caution in the adoption and interpretation of trust only as a general organizing principle, and suggest that psychological mechanisms also play an important role in the making and breaking of trust relations within organizations.     

More or less guanxi: Trust is 60% network context, 10% individual difference

The strong ties known in China as guanxi can be distinguished by a high level of trust relatively independent of the surrounding social structure. Using network data from a stratified probability sample of 700 entrepreneurs citing 4664 contacts, we study guanxi relative to other relations to learn how much individual differences such as well-being, business differences, political participation and demographic factors matter for the guanxi distinction. Two findings stand out: First, the connection between trust and social network is robust to most differences between individuals, especially business and political differences. Trust variance is 60% network context, and 10% individual differences. Trust increases within a relationship as network closure increases around the relationship, but some relationships mature into guanxi ties within which trust is high and relatively independent of the surrounding social structure. Second, when individual differences matter, they concern social isolation. Guanxi ties are more distinct in the networks around entrepreneurs with small, marginal families, and around those with small, closed networks. Both categories of entrepreneurs are likely to experience difficulties with respect to resource access and doing business with people beyond their network, which may explain why longstanding guanxi ties linked to important events are particularly distinct for these entrepreneurs.     

Experience of female public relations practitioners in Bahrain

The research addressed the gap in the literature about the experience of public relations practitioners in the non-Western society of Bahrain. The research aims to contribute to public relations scholarship by using a qualitative approach to study the experience of Bahraini women working in public relations. It used open interviews with Bahraini PR practitioners who offered rich insights on their “experiences” as women working in PR in Bahrain. The interviewees talked about various types of challenges when working in public relations such as cultural marginalization, relationship with colleagues, social domination, and marginalization of PR function. The research suggests combined liberal and radical feminist strategies to improve the role of Bahraini women in public relations. It recommends social and organizational reforms, in addition to empowering women to utilize their personality traits, communication behaviors and management styles.     

Racial and Ethnic Determinants of Interracial and Ethnic Trust

The purpose of this cross-sectional study was to discern which individual factors are associated with interracial/ethnic trust among a national probability sample of African Americans, Latinos, and non-Hispanic whites. Using national data from the 2000 Community Benchmark Survey, the multiple regression results indicate that, even after controlling for education and income, African Americans and Latinos reported significantly lower levels of interracial/ethnic trust than did non-Hispanic whites. Additionally, separate regression equations indicate that predictors associated with interracial/ethnic trust varied by racial and ethnic group. Implications and future research are discussed.