IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness

  • Harvey James

    (University of Missouri)

This paper examines the concepts of trust and trustworthiness in the context of a one-sided variation of the prisoner's dilemma, and it evaluates four different categories of solutions to the PD problem: changing player preferences, enforcing explicit contracts, establishing implicit contracts, and repeating the interaction of the players. Because these solutions rely on the creation of incentives to induce cooperation, this paper articulates a paradox of trust in that if one trusts another because there are incentives for the other to be trustworthy, then the vulnerability to exploitation is removed which gives trust its very meaning. The paper explores the implications of trust when understood to exist at two levels -- one in which there are incentives to trust, and the other in which appropriate incentives are absent.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://econwpa.repec.org/eps/mic/papers/0202/0202001.pdf
Download Restriction: no

File URL: http://econwpa.repec.org/eps/mic/papers/0202/0202001.ps.gz
Download Restriction: no

File URL: http://econwpa.repec.org/eps/mic/papers/0202/0202001.doc.gz
Download Restriction: no

Paper provided by EconWPA in its series Microeconomics with number 0202001.

as
in new window

Length: 28 pages
Date of creation: 04 Feb 2002
Date of revision:
Handle: RePEc:wpa:wuwpmi:0202001
Note: Type of Document - Microsoft Word; prepared on IBM PC; to print on HP; pages: 28; figures: 4. Figures embedded as tables in document
Contact details of provider: Web page: http://econwpa.repec.org

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:0202001. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.