Agent based computational model of trust
January 2004
Research Paper
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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
Classifications using
Journal of Economic Literature (JEL) Classification System
- C53 : Forecasting and Other Model Applications
- M : Business Administration and Business Economics; Marketing; Accounting
- M12 : Personnel Management
- L2 : Firm Objectives, Organization, and Behavior
- M10 : Business Administration: General
- L14 : Transactional Relationships; Contracts and Reputation; Networks
Automatically Extracted Terms
- buyer
- trust
- supplier
- profit
- agent
- relation
- scale
- asset
- value
- level
- cooperation
- loyalty
- effect
- strategy
- model
- result
- number
- hypothesis
- table
- economy
