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Trust and arena size: expectations, institutions, and general trust, and critical population and group sizes

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  • ELSNER, WOLFRAM
  • SCHWARDT, HENNING

Abstract

While trust and group size in socio-economic processes have been well investigated separately, approaches to synergize them have been rare. After addressing basic conditions for institutionalized cooperation, the agency capability of preferential mixing is introduced in order to determine the carrier group of an institution of cooperation. That platform typically assumes a meso-size smaller than the initial arena. Habituation and generalization within and across overlapping platforms then may lead to first contextual trust. This has to be carried over from individual platforms into the larger public of the whole economy to constitute general trust. The practical relevance of this analysis is illustrated through the fact that even superficially similar economies show different socio-economic performance and trajectories. Our results suggest investigating their inner deep structure of overlapping meso-sized platforms as a critical factor.

Suggested Citation

  • Elsner, Wolfram & Schwardt, Henning, 2014. "Trust and arena size: expectations, institutions, and general trust, and critical population and group sizes," Journal of Institutional Economics, Cambridge University Press, vol. 10(1), pages 107-134, March.
    • Handle: RePEc:cup:jinsec:v:10:y:2014:i:01:p:107-134_00
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    Citations

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    Cited by:

    1. Christian Cordes & Wolfram Elsner & Claudius Graebner & Torsten Heinrich & Joshua Henkel & Henning Schwardt & Georg Schwesinger & Tong-Yaa Su, 2021. "The collapse of cooperation: the endogeneity of institutional break-up and its asymmetry with emergence," Journal of Evolutionary Economics, Springer, vol. 31(4), pages 1291-1315, September.
    2. Yanlong Zhang, 2021. "The Demsetz’s Evolutionary Theory of Property Rights as Applied to Rural Land of China: A Supplement," Land, MDPI, vol. 10(9), pages 1-15, August.
    3. Wolfram Elsner, 2019. "Policy and state in complexity economics," Chapters, in: Nikolaos Karagiannis & John E. King (ed.), A Modern Guide to State Intervention, chapter 1, pages 13-48, Edward Elgar Publishing.
    4. Claudius Gräbner & Wolfram Elsner & Alex Lascaux, 2021. "Trust and Social Control: Sources of Cooperation, Performance, and Stability in Informal Value Transfer Systems," Computational Economics, Springer;Society for Computational Economics, vol. 58(4), pages 1077-1102, December.
    5. Brian Chi-ang Lin, 2015. "Institutional Fundraising: An Analysis of Taiwan's Religious Enterprises," Forum for Social Economics, Taylor & Francis Journals, vol. 44(3), pages 284-296, December.
    6. Sylvain Mignot & Annick Vignes, 2019. "Trust somebody but choose carefully : an empirical analysis of social relationships on an exchange market," Working Papers hal-02005026, HAL.
    7. Yanlong Zhang & Wolfram Elsner, 2020. "Social leverage, a core mechanism of cooperation. Locality, assortment, and network evolution," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 867-889, July.
    8. Claudius Gräbner & Wolfram Elsner & Alexander Lascaux, 2018. "To Trust or to Control: Informal Value Transfer Systems and Computational Analysis in Institutional Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 52(2), pages 559-569, April.
    9. Muñoz, Félix & Encinar, María Isabel & Fernández-de-Pinedo, Nadia, 2014. "Intentionality and technological and institutional change: Implications for economic development," Working Papers in Economic Theory 2014/04, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    10. Henning Schwardt, 2022. "Technology and social rules and norms in neo-Schumpeterian economics and in original institutional economics," PSL Quarterly Review, Economia civile, vol. 75(303), pages 385-401.
    11. Elsner, Wolfram & Schwardt, Henning, 2015. "The (dis-)embedded firm: Complex structure and dynamics in inter-firm relations. Adding institutionalization as a Veblenian dimension to the Coase-Williamson approach – An emerging triangular organiza," MPRA Paper 67193, University Library of Munich, Germany.
    12. Vladislav Valentinov & Stefan Hielscher & Ingo Pies, 2016. "Emergence: A Systems Theory’s Challenge to Ethics," Systemic Practice and Action Research, Springer, vol. 29(6), pages 597-610, December.
    13. Elsner, Wolfram, 2015. "Policy Implications of Economic Complexity and Complexity Economics," MPRA Paper 63252, University Library of Munich, Germany.
    14. Stefan Gehrig & Achim Schlüter & Peter Hammerstein, 2019. "Sociocultural heterogeneity in a common pool resource dilemma," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-16, January.
    15. Gao, Lin, 2017. "What Affects General Trust? A Perspective from Institutional Economics and Empirical Evidence from China," MPRA Paper 79948, University Library of Munich, Germany.
    16. Gao, Lin, 2016. "Trust and Performance: Exploring Socio-Economic Mechanisms in the “Deep” Network Structure with Agent-Based Modeling," MPRA Paper 75214, University Library of Munich, Germany.

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