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Human Nature in the Adaptation of Trust

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  • Nooteboom, B.

    (Tilburg University, Center for Economic Research)

Abstract

This chapter pleads for more inspiration from human nature, in agent-based modeling.As an illustration of an effort in that direction, it summarizes and discusses an agentbased model of the build-up and adaptation of trust between multiple producers and suppliers.The central question is whether, and under what conditions, trust and loyalty are viable in markets.While the model incorporates some well known behavioural phenomena from the trust literature, more extended modeling of human nature is called for.The chapter explores a line of further research on the basis of notions of mental framing and frame switching on the basis of relational signaling, derived from social psychology.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-37.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200637

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Web page: http://center.uvt.nl

Related research

Keywords: trust; transaction costs; buyer-supplier relationships; social psychology;

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References

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  1. Andreas Diekmann & Wojtek Przepiorka, 2005. "The Evolution of Trust and Reputation: Results from Simulation Experiments," Experimental 0508005, EconWPA.
  2. Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
  3. Gorobets, A. & Nooteboom, B., 2005. "Adaptive build-up and breakdown of trust: An agent based computational approach," Discussion Paper 2005-39, Tilburg University, Center for Economic Research.
  4. Wendelin Reich, 2004. "Reasoning About Other Agents: a Plea for Logic-Based Methods," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7(4), pages 4.
  5. Siegwart Lindenberg, 2000. "It Takes Both Trust and Lack of Mistrust: The Workings of Cooperation and Relational Signaling in Contractual Relationships," Journal of Management and Governance, Springer, vol. 4(1), pages 11-33, March.
  6. Klos, Tomas B. & Nooteboom, Bart, 2001. "Agent-based computational transaction cost economics," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 503-526, March.
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Cited by:
  1. Nooteboom, B., 2007. "Methodological Interactionism: Theory and Application to the Firm and to the Building of Trust," Discussion Paper 2007-5, Tilburg University, Center for Economic Research.

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