Agent based computational model of trust
AbstractThis paper employs the methodology of Agent-Based Computational Economics (ACE) to investigate under what conditions trust can be viable in markets. The emergence and breakdown of trust is modeled in a context of multiple buyers and suppliers. Agents adapt their trust in a partner, the weight they attach to trust relative to profitability, and their own trustworthiness, modeled as a threshold of defection. Adaptation occurs on the basis of realized profit. Trust turns out to be viable under fairly general conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2004-108-ORG.
Date of creation: 01 Jan 2004
Date of revision:
Contact details of provider:
Web page: http://www.erim.eur.nl/
agent-based computational economics; transaction costs; trust;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-16 (All new papers)
- NEP-CMP-2005-01-16 (Computational Economics)
- NEP-EVO-2005-01-16 (Evolutionary Economics)
- NEP-GTH-2005-01-16 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tesfatsion, Leigh, 1997.
"A Trade Network Game with Endogenous Partner Selection,"
Staff General Research Papers
1680, Iowa State University, Department of Economics.
- Leigh TESFATSION, 1995. "A Trade Network Game With Endogenous Partner Selection," Economic Report 36, Iowa State University Department of Economics.
- Arthur, W Brian, 1993. "On Designing Economic Agents That Behave Like Human Agents," Journal of Evolutionary Economics, Springer, vol. 3(1), pages 1-22, February.
- Arthur, W Brian, 1991. "Designing Economic Agents that Act Like Human Agents: A Behavioral Approach to Bounded Rationality," American Economic Review, American Economic Association, vol. 81(2), pages 353-59, May.
- Weisbuch, Gerard & Kirman, Alan & Herreiner, Dorothea, 2000.
"Market Organisation and Trading Relationships,"
Royal Economic Society, vol. 110(463), pages 411-36, April.
- Holland, John H & Miller, John H, 1991. "Artificial Adaptive Agents in Economic Theory," American Economic Review, American Economic Association, vol. 81(2), pages 365-71, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ERIM Series Handler at the ERIM Office).
If references are entirely missing, you can add them using this form.