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Learning to trust strangers: an evolutionary perspective

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  • Pierre Courtois
  • Tarik Tazdaït

Abstract

What if living in a relatively trustworthy society was sufficient to blindly trust strangers? In this paper we interpret generalized trust as a learning process and analyse the trust game paradox in light of the replicator dynamics. Given that trust inevitably implies doubts about others, we assume incomplete information and study the dynamics of trust in buyer-supplier purchase transactions. Considering a world made of “good” and “bad” suppliers, we show that the trust game admits a unique evolutionarily stable strategy: buyers may trust strangers if, on the whole, it is not too risky to do so. Examining the situation where some players may play, either as trustor or as trustee, we show that this result is robust.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2011-06.pdf
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Bibliographic Info

Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 11-06.

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Length: 15 pages
Date of creation: Feb 2011
Date of revision: Feb 2011
Handle: RePEc:lam:wpaper:11-06

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