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Disinformation and Mutual Trust: An Economic Model

Author

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  • Harashima, Taiji

Abstract

Information or disinformation is more likely to be believed if it comes from a trusted person or source. This means that the impact of disinformation will greatly differ depending on the level of trust. Moreover, one person’s judgement can be influenced by other people’s judgements, which conversely means that one person’s judgement can influence other people’s judgements. To examine this relationship, I construct a model of uncovering disinformation and combine it with a model of disinformation dissemination. I show that as the level of mutual trust in an economy (society) increases, the probability of uncovering disinformation increases, and a high level of mutual trust greatly restrains disinformation from being believed and accepted, which will consequently considerably increase efficiency in various aspects of economic activities. That is, mutual trust is an important factor to achieve high levels of economic, social, and perhaps political activities.

Suggested Citation

  • Harashima, Taiji, 2024. "Disinformation and Mutual Trust: An Economic Model," MPRA Paper 121865, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121865
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    References listed on IDEAS

    as
    1. Ernst Fehr, 2009. "On The Economics and Biology of Trust," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 235-266, 04-05.
    2. Harashima, Taiji, 2022. "Asymmetric Information and Ranked Information Are Equivalent in Making Information Utilization Heterogeneous," MPRA Paper 113576, University Library of Munich, Germany.
    3. Harashima, Taiji, 2021. "Economic Inequality and Heterogeneous Success Rates of Investment," MPRA Paper 110688, University Library of Munich, Germany.
    4. Harashima, Taiji, 2009. "A Theory of Total Factor Productivity and the Convergence Hypothesis: Workers’ Innovations as an Essential Element," MPRA Paper 15508, University Library of Munich, Germany.
    5. Harashima, Taiji, 2012. "A Theory of Intelligence and Total Factor Productivity: Value Added Reflects the Fruits of Fluid Intelligence," MPRA Paper 43151, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Harashima, Taiji, 2025. "Disinformation and “Bad” Financial Speculations: A Mechanism behind Financial Crises," MPRA Paper 124877, University Library of Munich, Germany.
    2. Harashima, Taiji, 2025. "Importance of Conscience in Total Factor Productivity: An Economic Model," MPRA Paper 126633, University Library of Munich, Germany.
    3. Harashima, Taiji, 2025. "Disinformation, Benefit of Group Membership, and Conscience: An Economic Model," MPRA Paper 124120, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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