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Human nature in the adaptation of trust

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Author Info
Nooteboom, Bart (Tilburg University, Center for Economic Research)

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

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Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
D64 - Microeconomics - - Welfare Economics - - - Altruism
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. Alexander Gorobets & Bart Nooteboom, 2006. "Adaptive Build-up and Breakdown of Trust: An Agent Based Computational Approach," Journal of Management and Governance, Springer, vol. 10(3), pages 277-306, September. [Downloadable!] (restricted)
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  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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. Andreas Diekmann & Wojtek Przepiorka, 2005. "The Evolution of Trust and Reputation: Results from Simulation Experiments," Experimental 0508005, EconWPA. [Downloadable!]
  5. 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. [Downloadable!] (restricted)
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