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Trust is the belief that another person will do what is expected. It brings with it a willingness for one
party A party is a gathering of people who have been invited by a Hospitality, host for the purposes of socializing, conversation, recreation, or as part of a festival or other commemoration or celebration of a special occasion. A party will oft ...
(the trustor) to become vulnerable to another party (the trustee), on the presumption that the trustee will act in ways that benefit the trustor. In addition, the trustor does not have control over the actions of the trustee. Scholars distinguish between generalized trust (also known as social trust), which is the extension of trust to a relatively large circle of unfamiliar others, and particularized trust, which is contingent on a specific situation or a specific relationship. As the trustor is uncertain about the outcome of the trustee's actions, the trustor can only develop and evaluate expectations. Such expectations are formed with a view to the
motivation Motivation is an mental state, internal state that propels individuals to engage in goal-directed behavior. It is often understood as a force that explains why people or animals initiate, continue, or terminate a certain behavior at a particul ...
s of the trustee, dependent on their characteristics, the situation, and their interaction. The uncertainty stems from the risk of failure or harm to the trustor if the trustee does not behave as desired. In the social sciences, the subtleties of trust are a subject of ongoing research. In
sociology Sociology is the scientific study of human society that focuses on society, human social behavior, patterns of Interpersonal ties, social relationships, social interaction, and aspects of culture associated with everyday life. The term sociol ...
and
psychology Psychology is the scientific study of mind and behavior. Its subject matter includes the behavior of humans and nonhumans, both consciousness, conscious and Unconscious mind, unconscious phenomena, and mental processes such as thoughts, feel ...
, the degree to which one party trusts another is a measure of belief in the honesty, fairness, or benevolence of another party. The term "confidence" is more appropriate for a belief in the
competence Broad concept article: *Competence (polyseme), capacity or ability to perform effectively Competence or competency may also refer to: *Competence (human resources), ability of a person to do a job properly **Competence-based management, performa ...
of the other party. A failure in trust may be forgiven more easily if it is interpreted as a failure of competence rather than a lack of benevolence or honesty. In
economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ...
, trust is often conceptualized as reliability in transactions. In all cases, trust is a
heuristic A heuristic or heuristic technique (''problem solving'', '' mental shortcut'', ''rule of thumb'') is any approach to problem solving that employs a pragmatic method that is not fully optimized, perfected, or rationalized, but is nevertheless ...
decision rule, allowing a person to deal with complexities that would require unrealistic effort in rational reasoning.


Types

Types of trust identified in
academic literature Academic publishing is the subfield of publishing which distributes Research, academic research and scholarship. Most academic work is published in academic journal articles, books or Thesis, theses. The part of academic written output that is n ...
include
contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
ual trust, competence trust and goodwill trust. American lawyer
Charles Fried Charles Anthony Fried (born Karel Fried; April 15, 1935 – January 23, 2024) was an American jurist and lawyer. He served as Solicitor General of the United States under President Ronald Reagan from 1985 to 1989. He was a professor at Harvard L ...
speaks of "contractual trust" as a "humdrum" experience based on the voluntary acceptance of contractual obligations: for example, people keep appointments and undertake commercial transactions. "Competence trust" can be defined as "a belief in the other's ability to do the job or complete a task"; this term is applied, for example, in relation to
cultural competence in healthcare Cultural competence in healthcare refers to the ability of healthcare professionals to effectively understand and respect patients' diverse values, beliefs, and feelings. This process includes consideration of the individual social, cultural, ...
. In working relationships, "goodwill trust" has been described as "trust regarding the benevolence and integrity of counterpart". Four types of social trust are recognized: *
Generalized trust Generalized trust, also known as spontaneous sociability, is the trust that people have in their fellow members of society in general. It is often measured in survey-based social science research by asking the question, "Generally speaking, woul ...
, or a dispositional trait geared towards trusting others, is an important form of trust in modern society, which involves much social interaction with strangers. Schilke ''et al.'' refer to generalized and particularized trust (trust exhibited in a specific situation or a specific relationship) as two significant research streams in the sociology of trust. * Out-group trust is the trust a person has in members of a different group. This could be members of a different ethnic group, or citizens of a different country, for example. *
In-group In social psychology and sociology, an in-group is a social group to which a person psychologically identifies as being a member. By contrast, an out-group is a social group with which an individual does not identify. People may for example ...
trust is placed in members of one's own group. *Trust in neighbors considers the relationships between people with a common residential environment.


Sociology

Sociology claims trust is one of several social constructs; an element of the
social reality Social reality refers to a socially constructed perspective of the world, consisting of the accepted social tenets of a community involving laws and social representations. It is distinct from biological reality or individual cognitive reality, ...
. Other constructs frequently discussed together with trust include control, confidence, risk, meaning and power. Trust is attributable to relationships between social actors, both individuals and groups (social systems). Sociology is concerned with the position and role of trust in social systems. Interest in trust has grown significantly since the early 1980s, from the early works of Luhmann, Barber, and Giddens (see Sztompka for a more detailed overview). This growth of interest in trust has been stimulated by ongoing changes in society, known as
late modernity Late modernity (or liquid modernity) is the characterization of today's highly developed global society, societies as the continuation (or social progress, development) of modernity rather than as an element of the succeeding era known as postmo ...
and
post-modernity Postmodernity (post-modernity or the postmodern condition) is the economic or cultural state or condition of society which is said to exist ''after'' modernity. Some schools of thought hold that modernity ended in the late 20th century – in th ...
.
Sviatoslav Sviatoslav (, ; , ) is a Russian and Ukrainian given name of Slavic origin. Cognates include Svetoslav, Svatoslav, , Svetislav. It has a Pre-Christian pagan character and means "one who worships the light" (likely in reference to the sun). In C ...
contended that society needs trust because it increasingly finds itself operating at the edge between confidence in what is known from everyday experience and contingency of new possibilities. Without trust, one should always consider all contingent possibilities, leading to paralysis by analysis. Trust acts as a decisional heuristic, allowing the decision-maker to overcome
bounded rationality Bounded rationality is the idea that rationality is limited when individuals decision-making, make decisions, and under these limitations, rational individuals will select a decision that is satisficing, satisfactory rather than optimal. Limitat ...
and process what would otherwise be an excessively complex situation. Trust can be seen as a bet on one of many contingent futures, specifically, the one that appears to deliver the greatest benefits. Once the bet is decided (i.e. trust is granted), the trustor suspends his or her disbelief, and the possibility of a negative course of action is not considered at all. Hence trust acts as a reducing agent of
social complexity In sociology, social complexity is a conceptual framework used in the analysis of society. In the sciences, contemporary definitions of complexity are found in systems theory, wherein the phenomenon being studied has many parts and many possible ...
, allowing for
cooperation Cooperation (written as co-operation in British English and, with a varied usage along time, coöperation) takes place when a group of organisms works or acts together for a collective benefit to the group as opposed to working in competition ...
. Sociology tends to focus on two distinct views: the macro view of social systems, and a micro view of individual social actors (where it borders with
social psychology Social psychology is the methodical study of how thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others. Although studying many of the same substantive topics as its counterpart in the field ...
). Views on trust follow this dichotomy. On one side, the systemic role of trust can be discussed with a certain disregard to the psychological complexity underpinning individual trust. The behavioral approach to trust is usually assumed while actions of social actors are measurable, allowing for statistical modelling of trust. This systemic approach can be contrasted with studies on social actors and their decision-making process, in anticipation that understanding of such a process will explain (and allow to model) the emergence of trust. Sociology acknowledges that the contingency of the future creates a dependency between social actors and, specifically, that the trustor becomes dependent on the trustee. Trust is seen as one of the possible methods to resolve such a dependency, being an attractive alternative to control. Trust is valuable if the trustee is much more powerful than the trustor, yet the trustor is under social obligation to support the trustee. Modern information technologies have not only facilitated the transition to a post-modern society but have also challenged traditional views on trust.
Information system An information system (IS) is a formal, sociotechnical, organizational system designed to collect, process, Information Processing and Management, store, and information distribution, distribute information. From a sociotechnical perspective, info ...
s research has identified that people have come to trust in technology via two primary constructs: The first consists of human-like constructs, including benevolence, honesty, and competence, whilst the second employs system-like constructs, such as usefulness, reliability, and functionality. The discussion surrounding the relationship between information technologies and trust is still in progress as research remains in its infant stages.


High- and low-trust societies


Influence of ethnic diversity

Several dozen studies have examined the impact of
ethnic diversity Multiculturalism is the coexistence of multiple cultures. The word is used in sociology, in political philosophy, and colloquially. In sociology and everyday usage, it is usually a synonym for ''ethnic'' or cultural pluralism in which various ...
on social trust. Research published in the
Annual Review of Political Science ''Annual Review of Political Science'' is an annual peer-reviewed academic journal published by Annual Reviews, covering significant developments in the field of political science, including political theory and philosophy, international relation ...
concluded that there were three key debates on the subject: # Why does ethnic diversity modestly reduce social trust? # Can contact reduce the negative association between ethnic diversity and social trust? # Is ethnic diversity a stand-in for social disadvantage? The review's
meta-analysis Meta-analysis is a method of synthesis of quantitative data from multiple independent studies addressing a common research question. An important part of this method involves computing a combined effect size across all of the studies. As such, th ...
of 87 studies showed a consistent, though modest, negative relationship between ethnic diversity and social trust. Ethnic diversity has the strongest negative impact on neighbor trust, in-group trust, and generalized trust. It did not appear to have a significant impact on out-group trust. The authors present a warning about the modest size of the effect, stating, "However, the rather modest size of the verall negative relationshipimplies that apocalyptic claims regarding the severe threat of ethnic diversity for social trust in contemporary societies are exaggerated."


Psychology

In psychology, trust is believing that the trusted person will do what is expected. According to the
psychoanalyst PsychoanalysisFrom Greek: and is a set of theories and techniques of research to discover unconscious processes and their influence on conscious thought, emotion and behaviour. Based on dream interpretation, psychoanalysis is also a talk th ...
Erik Erikson Erik Homburger Erikson (born Erik Salomonsen; 15 June 1902 – 12 May 1994) was a German-American child psychoanalyst and visual artist known for his theory on psychosocial development of human beings. He coined the phrase identity crisis. ...
, development of basic trust is the first state of psychosocial development occurring, or failing, during the first two years of life. Success results in feelings of
security Security is protection from, or resilience against, potential harm (or other unwanted coercion). Beneficiaries (technically referents) of security may be persons and social groups, objects and institutions, ecosystems, or any other entity or ...
and optimism, while failure leads towards an orientation of insecurity and mistrust possibly resulting in attachment disorders. A person's dispositional tendency to trust others can be considered a
personality trait In psychology, trait theory (also called dispositional theory) is an approach to the study of human personality. Trait theorists are primarily interested in the measurement of ''traits'', which can be defined as habitual patterns of behavior, thou ...
and as such is one of the strongest predictors of subjective well-being. Trust increases subjective well-being because it enhances the quality of one's interpersonal relationships; happy people are skilled at fostering good relationships. Trust is integral to the idea of
social influence Social influence comprises the ways in which individuals adjust their behavior to meet the demands of a social environment. It takes many forms and can be seen in conformity, socialization, peer pressure, obedience (human behavior), obedience, le ...
: it is easier to influence or persuade someone who is trusting. The notion of trust is increasingly adopted to predict acceptance of behaviors by others,
institution An institution is a humanly devised structure of rules and norms that shape and constrain social behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions and ...
s (e.g.
government agencies A government agency or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government (bureaucracy) that is responsible for the oversight and administration of specific functions, ...
), and objects such as machines. Yet once again, perceptions of honesty, competence and value similarity (slightly similar to benevolence) are essential. There are three forms of trust commonly studied in psychology: * ''Trust'' is being vulnerable to someone even when they are trustworthy. * ''
Trustworthiness Trust is the belief that another person will do what is expected. It brings with it a willingness for one party (the trustor) to become vulnerable to another party (the trustee), on the presumption that the trustee will act in ways that benefit ...
'' are the characteristics or behaviors of one person that inspire positive expectations in another person. * '' Trust propensity'' is the tendency to make oneself vulnerable to others in general. Research suggests that this general tendency can change over time in response to key life events. Once trust is lost by violation of one of these three determinants, it is very hard to regain. There is asymmetry in the building versus destruction of trust. Research has been conducted into the social implications of trust, for instance: * Barbara Misztal attempted to combine all notions of trust. She described three functions of trust: it makes social life predictable, it creates a sense of
community A community is a social unit (a group of people) with a shared socially-significant characteristic, such as place, set of norms, culture, religion, values, customs, or identity. Communities may share a sense of place situated in a given g ...
, and it makes it easier for people to work together. * In the context of sexual trust, Riki Robbins describes four stages. These consist of perfect trust, damaged trust, devastated trust, and restored trust. * In the context of
information theory Information theory is the mathematical study of the quantification (science), quantification, Data storage, storage, and telecommunications, communication of information. The field was established and formalized by Claude Shannon in the 1940s, ...
, Ed Gerck social functions such as power, surveillance, and
accountability In ethics and governance, accountability is equated with answerability, culpability, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to problems in the public secto ...
. * From a
social identity Identity is the set of qualities, beliefs, personality traits, appearance, or expressions that characterize a person or a group. Identity emerges during childhood as children start to comprehend their self-concept, and it remains a consistent ...
perspective, the propensity to trust strangers (see
in-group favoritism In-group favoritism, sometimes known as in-group–out-group bias, in-group bias, intergroup bias, or in-group preference, is a pattern of favoring members of one's Ingroups and outgroups, in-group over out-group members. This can be expressed ...
) arises from the mutual knowledge of a shared group membership,
stereotype In social psychology, a stereotype is a generalization, generalized belief about a particular category of people. It is an expectation that people might have about every person of a particular group. The type of expectation can vary; it can ...
s, or the need to maintain the group's positive distinctiveness. Despite the centrality of trust to the positive functioning of people and relationships, very little is known about how and why trust evolves, is maintained, and is destroyed. One factor that enhances trust among people is facial resemblance. Experimenters who digitally manipulated facial resemblance in a two-person sequential trust game found evidence that people have more trust in a partner who has similar
facial feature The face is the front of the head that features the eyes, nose and mouth, and through which animals express many of their emotions. The face is crucial for human identity, and damage such as scarring or developmental deformities may affect ...
s. Facial resemblance also decreased
sexual desire Sexual desire is an emotion and motivational state characterized by an interest in sexual objects or activities, or by a drive to seek out sexual objects or to engage in sexual activities. It is an aspect of sexuality, which varies significantly ...
for a partner. In a series of tests, digitally manipulated faces were presented to subjects who evaluated them for attractiveness within a long-term or short-term relationship. The results showed that within the context of a short-term relationship dependent on sexual desire, similar facial features caused a decrease in desire. Within the context of a long-term relationship, which is dependent on trust, similar facial features increased a person's attractiveness. This suggests that facial resemblance and trust have great effects on relationships. Interpersonal trust literature investigates "trust-diagnostic situations": situations that test partners' abilities to act in the best interests of the other person or the relationship while rejecting a conflicting option which is merely in their
self-interest Self-interest generally refers to a focus on the needs or desires (''interests'') of one's self. Most times, actions that display self-interest are often performed without conscious knowing. A number of philosophical, psychological, and economi ...
. Trust-diagnostic situations occur throughout everyday life, though they can also be deliberately engineered by people who want to test the current level of trust in a relationship. A low-trust relationship is one in which a person has little confidence their partner is truly concerned about them or the relationship. People in low trust relationships tend to make distress-maintaining attributions whereby they place their greatest focus on the consequences of their partner's negative behavior, and any impacts of positive actions are minimized. This feeds into the overarching notion that the person's partner is uninterested in the relationship, and any positive acts on their part are met with
skepticism Skepticism ( US) or scepticism ( UK) is a questioning attitude or doubt toward knowledge claims that are seen as mere belief or dogma. For example, if a person is skeptical about claims made by their government about an ongoing war then the p ...
, leading to further negative outcomes. Distrusting people may miss opportunities for trusting relationships. Someone subject to an abusive childhood may have been deprived of any evidence that trust is warranted in future relationships. An important key to treating sexual victimization of a child is the rebuilding of trust between parent and child. Failure by adults to validate that
sexual abuse Sexual abuse or sex abuse is abusive sexual behavior by one person upon another. It is often perpetrated using physical force, or by taking advantage of another. It often consists of a persistent pattern of sexual assaults. The offender is re ...
occurred contributes to the child's difficulty in trusting self and others. A child's trust can also be affected by the erosion of the marriage of their parents. Children of
divorce Divorce (also known as dissolution of marriage) is the process of terminating a marriage or marital union. Divorce usually entails the canceling or reorganising of the legal duties and responsibilities of marriage, thus dissolving the M ...
do not exhibit less trust in mothers, partners, spouses, friends, and associates than their peers of intact families. The impact of parental divorce is limited to trust in the father. People may trust non-human agents. For instance, people may trust animals, the scientific process, and . Trust helps create a social contract that allows humans and domestic animals to live together. Trust in the scientific process is associated with increased trust in innovations such as biotechnology. When it comes to trust in social machines, people are more willing to trust intelligent machines with humanoid morphologies and female cues, when they are focused on tasks (versus socialization), and when they behave morally well. More generally, they may be trusted as a function of the "machine heuristic"—a mental shortcut with which people assume that machines are less biased, more accurate, and more reliable than people—such that people may sometimes trust a robot more than a person. People are disposed to trust and to judge the trustworthiness of other people or groups—for instance, in developing relationships with potential mentors. One example would be as part of interprofessional work in the referral pathway from an emergency department to a hospital ward. Another would be building knowledge on whether new practices, people, and things introduced into our lives are indeed accountable or worthy of investing confidence and trust in. This process is captured by the empirically grounded construct of "Relational Integration" within
Normalization Process Theory Normalization process theory (NPT) is a sociological theory, generally used in the fields of science and technology studies (STS), implementation research, and healthcare system research. The theory deals with the adoption of technological and o ...
. This can be traced in
neuroscience Neuroscience is the scientific study of the nervous system (the brain, spinal cord, and peripheral nervous system), its functions, and its disorders. It is a multidisciplinary science that combines physiology, anatomy, molecular biology, ...
terms to the neurobiological structure and activity of a human brain. Some studies indicate that trust can be altered by the application of
oxytocin Oxytocin is a peptide hormone and neuropeptide normally produced in the hypothalamus and released by the posterior pituitary. Present in animals since early stages of evolution, in humans it plays roles in behavior that include Human bonding, ...
.


Social identity approach

The
social identity approach "Social identity approach" is an umbrella term designed to show that there are two methods used by academics to describe certain complex social phenomena- namely the dynamics between groups and individuals. Those two theoretical methods are called ...
explains a person's trust in strangers as a function of their group-based stereotypes or in-group favoring behaviors which they base on salient group memberships. With regard to ingroup favoritism, people generally think well of strangers but expect better treatment from in-group members in comparison to out-group members. This greater expectation translates into a propensity to trust a member of the in-group more than a member of the out-group. It is only advantageous for one to form such expectations of an in-group stranger if the stranger also knows one's own group membership. The social identity approach has been empirically investigated. Researchers have employed allocator studies to understand group-based trust in strangers. They may be operationalized as
unilateral __NOTOC__ Unilateralism is any doctrine or agenda that supports one-sided action. Such action may be in disregard for other parties, or as an expression of a commitment toward a direction which other parties may find disagreeable. As a word, ''un ...
or
bilateral Bilateral may refer to any concept including two sides, in particular: *Bilateria, bilateral animals *Bilateralism, the political and cultural relations between two states *Bilateral, occurring on both sides of an organism ( Anatomical terms of l ...
relationships of exchange. General social categories such as university affiliation, course majors, and even ad-hoc groups have been used to distinguish between in-group and out-group members. In unilateral studies of trust, the participant is asked to choose between envelopes containing money that an in-group or out-group member previously allocated. Participants have no prior or future opportunities for interaction, thereby testing Brewer's notion that group membership is sufficient to bring about group-based trust and hence cooperation. Participants could expect an amount ranging from nothing to the maximum value an allocator could give out. Bilateral studies of trust have employed an investment game devised by Berg and colleagues in which people choose to give a portion or none of their money to another. Any amount given would be tripled and the receiver would then decide whether they would return the favor by giving money back to the sender. This was meant to test trusting behavior on the sender's part and the receiver's eventual trustworthiness. Empirical research demonstrates that when group membership is salient to both parties, trust is granted more readily to in-group members than out-group members. This occurs even when the in-group's stereotype was comparatively less positive than the out-group's , , and when participants had the option of a sure sum of money (i.e. in essence opting out of the need to trust a stranger to gain some monetary reward). When only was made aware of group membership, trust becomes reliant upon group stereotypes. The group with the more positive stereotype was trusted (e.g. one's university affiliation over another's) even over that of the in-group (e.g. nursing over psychology majors). Another explanation for in-group-favoring behaviors could be the need to maintain in-group positive distinctiveness, particularly in the presence of social identity threat. Trust in out-group strangers increased when personal cues to identity were revealed.


Philosophy

Many philosophers have written about different forms of trust. Most agree that interpersonal trust is the foundation on which these forms can be modeled. For an act to be an expression of trust, it must not betray the expectations of the trustee. Some philosophers, such as Lagerspetz, argue that trust is a kind of reliance, though not merely reliance. Gambetta argued that trust is the inherent belief that others generally have good intentions, which is the foundation for our reliance on them. Philosophers such as Annette Baier challenged this view, asserting a difference between trust and reliance by saying that trust can be betrayed, whereas reliance can only be disappointed. Carolyn McLeod explains Baier's argument with the following examples: we can rely on our clock to give the time, but we do not feel betrayed when it breaks, thus, we cannot say that we trusted it; we are not trusting when we are suspicious of another person, because this is in fact an expression of distrust. The violation of trust warrants this sense of betrayal. Thus, trust is different from reliance in the sense that a trustor accepts the risk of being betrayed. Karen Jones proposed an emotional aspect to trust—
optimism Optimism is the Attitude (psychology), attitude or mindset of expecting events to lead to particularly positive, favorable, desirable, and hopeful outcomes. A common idiom used to illustrate optimism versus pessimism is Is the glass half empty ...
that the trustee will do the right thing by the trustor, which is also described as "affective trust". People sometimes trust others even without this optimistic expectation, instead hoping that by extending trust this will prompt trustworthy behavior in the trustee. This is known as "therapeutic trust" and gives both the trustee a reason to be trustworthy, and the trustor a reason to believe they are trustworthy. The definition of trust as a belief in something or a confident expectation about something eliminates the notion of risk because it does not include whether the expectation or belief is favorable or unfavorable. For example, to expect a friend to arrive to dinner late because she has habitually arrived late for the last fifteen years is a confident expectation (whether or not we find her late arrivals to be annoying). The trust is not about what we wish for, but rather it is in the consistency of the data. As a result, there is no risk or sense of betrayal because the data exists as collective knowledge. Faulkner contrasts such "predictive trust" with the aforementioned affective trust, proposing that predictive trust may only warrant disappointment as a consequence of an inaccurate prediction, not a sense of betrayal.


Economics

Trust in economics explains the difference between actual human behavior and behavior that could be explained by people's desire to maximize utility. In economic terms, trust can explain a difference between
Nash equilibrium In game theory, the Nash equilibrium is the most commonly used solution concept for non-cooperative games. A Nash equilibrium is a situation where no player could gain by changing their own strategy (holding all other players' strategies fixed) ...
and the observed equilibrium. Such an approach can be applied to individual people as well as to societies. Trust is important to economists for many reasons. Taking the " Market for Lemons" transaction popularized by
George Akerlof George Arthur Akerlof (born June 17, 1940) is an American economist and a university professor at the McCourt School of Public Policy at Georgetown University and Koshland Professor of Economics Emeritus at the University of California, Berkeley. ...
as an example, if a potential buyer of a car does not trust the seller not to sell a lemon, the transaction will not take place. The buyer will not buy without trust, even if the product would be of great value to the buyer. Trust can act as an economic lubricant, reducing the cost of transactions between parties, enabling new forms of cooperation, and generally furthering business activities, employment, and prosperity. This observation prompted interest in trust as a form of
social capital Social capital is a concept used in sociology and economics to define networks of relationships which are productive towards advancing the goals of individuals and groups. It involves the effective functioning of social groups through interper ...
and research into the process of creation and distribution of such capital. A higher level of social trust may be positively correlated with
economic development In economics, economic development (or economic and social development) is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and object ...
: Even though the original concept of "high trust" and "low trust" societies may not necessarily hold, social trust benefits the economy and a low level of trust inhibits
economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...
. The absence of trust restricts growth in employment, wages, and profits, thus reducing the overall welfare of society. The
World Economic Forum The World Economic Forum (WEF) is an international non-governmental organization, international advocacy non-governmental organization and think tank, based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German ...
s of 2022 and 2024 both adopted the rebuilding of trust as their themes. Theoretical economical modelling demonstrates that the optimum level of trust that a rational economic agent should exhibit in transactions is equal to the trustworthiness of the other party. Such a level of trust leads to an efficient market. Trusting less leads to losing economic opportunities, while trusting more leads to unnecessary vulnerabilities and potential exploitation. Economics is also interested in quantifying trust, usually in monetary terms. The level of correlation between an increase in
profit margin Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated. Profit margi ...
and a decrease in transactional costs can be used as an indicator of the economic value of trust. Economic "trust games" empirically quantify trust in relationships under laboratory conditions. Several games and game-like scenarios related to trust have been tried, those that allow the estimation of confidence in monetary terms. In games of trust the Nash equilibrium differs from Pareto optimum so that no player alone can maximize their own utility by altering their selfish strategy without cooperation. Cooperating partners can also benefit. The classical version of the game of trust has been described as an abstract investment game, using the scenario of an investor and a broker. The investor can invest some fraction of his money, and the broker can return to the investor some fraction of the investor's gains. If both players follow their naive economic best interest, the investor should never invest, and the broker will never be able to repay anything. Thus the flow of money, its volume, is attributable entirely to the existence of trust. Such a game can be played as a once-off, or repeatedly with the same or different sets of players to distinguish between a general propensity to trust and trust within particular relationships. Several variants of this game exist. Reversing rules leads to the game of distrust, pre-declarations can be used to establish intentions of players, while alterations to the distribution of gains can be used to manipulate the perceptions of both players. The game can be played by several players on the closed market, with or without information about reputation. Other interesting games include binary-choice trust games and the gift-exchange game. Games based on the
Prisoner's Dilemma The prisoner's dilemma is a game theory thought experiment involving two rational agents, each of whom can either cooperate for mutual benefit or betray their partner ("defect") for individual gain. The dilemma arises from the fact that while def ...
link trust with economic utility and demonstrate the rationality behind reciprocity. The popularization of
e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...
led to new challenges related to trust within the digital economy and the desire to understand buyers' and sellers' decisions to trust one another. For example, interpersonal relationships between buyers and sellers have been disintermediated by the technology, and consequentially they required improvement. Websites can influence the buyer to trust the seller, regardless of the seller's actual trustworthiness. Reputation-based systems can improve trust assessment by capturing a collective perception of trustworthiness; this has generated interest in various models of reputation.


Management and organization science

In management and organization science, trust is studied as a factor which organizational actors can manage and influence. Scholars have researched how trust develops across individual and organizational levels of analysis. They suggest a reciprocal process in which organizational structures influence people's trust and, at the same time, people's trust manifests in organizational structures. Trust, sometimes referred to as trust capital, is also one of the conditions of an
organizational culture Organizational culture encompasses the shared norms, values, corporate language and behaviors - observed in schools, universities, not-for-profit groups, government agencies, and businesses - reflecting their core values and strategic direction. ...
that supports
knowledge sharing Knowledge sharing is an activity through which knowledge (namely, information, skills, or expertise) is exchanged among people, friends, peers, families, communities (for example, Wikipedia), or within or between organizations. It bridges the ind ...
. An organizational culture that supports knowledge sharing allows employees to feel secure and comfortable to share their knowledge, their work, and their expertise. Structure often creates trust in a person, and this encourages them to feel comfortable and excel in the workplace; it makes an otherwise stressful environment manageable. Management and organization science scholars have also studied how trust is influenced by contracts and how trust interacts with formal mechanisms. Scholars in management and related disciplines have also made a case for the importance of ''distrust'' as a related but distinct construct. Similarly scholars have assessed the relationship between monitoring and trust, for example in a trust game context, and in
shareholder A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ...
-management relations. Since the mid-1990s, organizational research has followed two distinct but nonexclusive paradigms of trust research: # The first distinguishes between two major dimensions of trust: Trust in another can be characterized as cognition-based trust (based on rational calculation) and affect-based trust (based on emotional attachment). For example, trust in an auto repair shop could come in the form of an assessment of the capabilities of the shop to do a good job repairing one's car (cognition-based trust) or of having a longstanding relationship with the shop's owner (affect-based trust). # The second distinguishes between the trustworthiness factors that give rise to trust (i.e., one's perceived ability, benevolence, and integrity) and trust itself. Together, these paradigms predict how different dimensions of trust form in organizations by demonstrating various trustworthiness attributes.


Systems

In
systems A system is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its boundaries, structure and purpose and is exp ...
, a trusted component has a set of properties that another component can rely on. If A trusts B, a violation in B's properties might compromise A's correct operation. Observe that those properties of B trusted by A might not correspond quantitatively or qualitatively to B's actual properties. This occurs when the designer of the overall system does not consider the relation. Consequently, trust should be placed to the extent of the component's trustworthiness. The trustworthiness of a component is thus, not surprisingly, defined by how well it secures a set of functional and non-functional properties, deriving from its architecture, construction, and environment, and evaluated as appropriate.


Other

Trust in politics is
political efficacy In political science, political efficacy is the citizens' trust in their ability to change the government and belief that they can understand and influence political affairs. It is commonly measured by surveys and is used as an indicator for the ...
.


See also


References


Further reading

* Bachmann, Reinhard and Zaheer, Akbar (eds) (2006). ''Handbook of Trust Research''. Cheltenham: Edward Elgar. * Bicchieri, Cristina, Duffy, John and Tolle, Gil (2004). "Trust among strangers", ''Philosophy of Science'' 71: 1–34. * Herreros, Francisco (2023). " The State and Trust". ''Annual Review of Political Science'' 26 (1) * Kelton, Kari; Fleischmann, Kenneth R. & Wallace, William A. (2008). "Trust in Digital Information". ''Journal of the American Society for Information Science and Technology'', 59(3):363–374. * Maister, David H., Green, Charles H. & Galford, Robert M. (2000). ''The Trusted Advisor''. Free Press, New York * *Schilke, Oliver; Reimann, Martin; Cook, Karen S. (2021).
Trust in Social Relations
. ''Annual Review of Sociology''. 47(1).


External links

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Trust
at
Psychology Today ''Psychology Today'' is an American media organization with a focus on psychology and human behavior. The publication began as a bimonthly magazine, which first appeared in 1967. The print magazine's reported circulation is 275,000 as of 2023. ...
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The Neuroscience of Trust
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New Research Determines Who You Can Trust the Most
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Trust Building Activities


edited by Diego Gambetta
''Am I Trustworthy?'' (1950) Educational video clipStony Brook University weekly seminars on the issue of trust in the personal, religious, social, and scientific realms
Harvey S. James Jr., Ph.D. (Updated August 2007) A variety of definitions of trust are collected and listed. {{DEFAULTSORT:Trust (Social Sciences) Interpersonal relationships Reputation management Concepts in ethics Accountability Social constructionism Social epistemology Sociological terminology Emotions Moral psychology