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Trust me, it is High Trust: On Trust and its Measurement

Author

Listed:
  • Christian Lukas

    (Department of Economics, University of Konstanz, Germany)

  • Peter Walgenbach

    (School of Economics and Business Administration, Friedrich Schiller University of Jena, Germany)

Abstract

As the positive impact of trust on business success is widely undisputed, the question of how to measure trust naturally arises. Both expectations of trustworthy behavior and possible gains and losses from a trusting relationship influence the level of trust between two parties or individuals. This paper explores whether an exchange featuring (almost) equal expected gains and expected losses for a trusting individual is evidence for high trust or low trusts; we argue that such an exchange tends to display low trust. A simple trust measure is suggested that can be applied both in experimental and analytical research.

Suggested Citation

  • Christian Lukas & Peter Walgenbach, 2010. "Trust me, it is High Trust: On Trust and its Measurement," Working Paper Series of the Department of Economics, University of Konstanz 2010-09, Department of Economics, University of Konstanz.
    • Handle: RePEc:knz:dpteco:1009
    as

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    File URL: http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_Lukas-Walgenbach-9-10.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trust; trust measurement; trust as behavior; agency theory; behaviroal game theory; investment game;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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