Suchergebnisse

Trust problems hamper many social and economic exchanges. In such situations, there are often institutions that enable trustors to share information on the performance of trustees. While the benefits of such institutions have been researched extensively, little is known about their emergence. This article presents a game-theoretic model for the understanding of investments by trustees in establishing information sharing between trustors. The model allows for a simultaneous analysis of investments in and effects of institutions for information sharing. It captures two mechanisms by which a trustee's investment can promote trust. First, a trustee's investment in establishing information sharing can enable network effects that facilitate trust and trustworthiness. Second, it can promote trust by serving as a signal of intrinsic trustworthiness. The analysis of the model implies predictions for how characteristics of the interaction situation affect whether these mechanisms motivate a trustee to establish information sharing.

Abstract
This paper brings two major research lines in current sociology together. Research on social networks has long focused primarily on network effects but meanwhile also addresses the emergence and dynamics of networks. Research on trust in social and economic relations shows that networks have effects on trust. Using game theory, we provide a simple model that allows for an integrated and simultaneous analysis of network effects on trust and for the endogenous emergence of the network. The model also allows for characterizing the value of the network. We use standard assumptions on full strategic rationality. Testable implications of the model as well as model extensions are sketched.