Template-Type: ReDIF-Paper 1.0
Author-Name: Gorobets, A.
Author-Name-Last: Gorobets
Author-Name-First: Alexander
Author-Name: Nooteboom, B.
Author-Name-Last: Nooteboom
Author-Name-First: Bart
Author-Person: pno58
Title: Agent based computational model of trust
Abstract: 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.
Creation-Date: 2004-01-01
File-URL: https://repub.eur.nl/pub/1840/ERS%202004%20108%20ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2004-108-ORG
Classification-JEL: C53, L14, L2, M, M10, M12
Keywords: agent-based computational economics, transaction costs, trust
Handle: RePEc:ems:eureri:1840