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Trust

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Abstract

Trust pervades every aspect of our daily lives, from business transactions to dealings with loved-ones, yet why we trust some in certain instances but not others is little understood. At an aggregate level, surveys of trustworthiness show enormous differences across countries, from 3% in Brazil to 65% in Norway. This article reports on new research that has characterized the legal, social, economic, and environmental factors that cause trust to be high or low. It also reports on laboratory experiments that demonstrate that trust has a neurophysiological basis. This research shows that low trust is a fundamental cause of poverty, but also that trust is directly influenced by government policies and particular human interactions. The article concludes with implications of this research for a variety of business situations.

Suggested Citation

  • Zak, Paul, 2003. "Trust," Journal of Financial Transformation, Capco Institute, vol. 7, pages 17-24.
    • Handle: RePEc:ris:jofitr:1296
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    More about this item

    Keywords

    Trust; trustworthiness; neurophysiology;
    All these keywords.

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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