Agent based computational model of trust
This paper employs the methodology of Agent-Based Computational Economics (ACE) to investigate under what conditions trust can be viable in markets. The emergence and breakdown of trust is modeled in a context of multiple buyers and suppliers. Agents adapt their trust in a partner, the weight they attach to trust relative to profitability, and their own trustworthiness, modeled as a threshold of defection. Adaptation occurs on the basis of realized profit. Trust turns out to be viable under fairly general conditions.
|Keywords||agent-based computational economics, transaction costs, trust|
Gorobets, A., & Nooteboom, B.. (2004). Agent based computational model of trust (No. ERS-2004-108-ORG). Retrieved from http://hdl.handle.net/1765/1840