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

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Author Info
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.

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File URL: http://www.iese.edu/research/pdfs/DI-0567-E.pdf
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Publisher Info
Paper provided by IESE Business School in its series IESE Research Papers with number D/567.

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Length: 32 pages
Date of creation: 15 Sep 2004
Date of revision:
Handle: RePEc:ebg:iesewp:d-0567

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research
Keywords: Trust; Bounded rationality; Value systems; Behavioral decision-making;

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  1. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, EconWPA. [Downloadable!]
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