Learning to trust strangers: an evolutionary perspective
AbstractWhat if living in a relatively trustworthy society was sufficient to blindly trust strangers? In this paper we interpret generalized trust as a learning process and analyse the trust game paradox in light of the replicator dynamics. Given that trust inevitably implies doubts about others, we assume incomplete information and study the dynamics of trust in buyer-supplier purchase transactions. Considering a world made of âgoodâ and âbadâ suppliers, we show that the trust game admits a unique evolutionarily stable strategy: buyers may trust strangers if, on the whole, it is not too risky to do so. Examining the situation where some players may play, either as trustor or as trustee, we show that this result is robust.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Evolutionary Economics.
Volume (Year): 22 (2012)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00191/index.htm
Other versions of this item:
- Pierre Courtois & Tarik Tazdaït, 2011. "Learning to trust strangers: an evolutionary perspective," Working Papers 11-06, LAMETA, Universtiy of Montpellier, revised Feb 2011.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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