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Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust

Author

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  • Rosanas, Jose M.

    (IESE Business School)

Abstract

This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.

Suggested Citation

  • Rosanas, Jose M., 2004. "Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust," IESE Research Papers D/567, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0567
    as

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    References listed on IDEAS

    as
    1. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
    2. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    3. Marek Korczynski, 2000. "The Political Economy of Trust," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
    4. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
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    Cited by:

    1. Argandoña, Antonio, 2005. "Firm, market economy and social responsibility," IESE Research Papers D/600, IESE Business School.
    2. Josep Rosanas, 2008. "Beyond Economic Criteria: A Humanistic Approach to Organizational Survival," Journal of Business Ethics, Springer, vol. 78(3), pages 447-462, March.
    3. Rosanas, Josep M., 2006. "Beyond economic criteria: A humanistic approach to organizational survival," IESE Research Papers D/654, IESE Business School.

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    More about this item

    Keywords

    Trust; Bounded rationality; Value systems; Behavioral decision-making;
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