IDEAS home Printed from https://ideas.repec.org/a/sae/ratsoc/v12y2000i2p227-253.html
   My bibliography  Save this article

An Experiment On The Effects Of Embeddedness In Trust Situations

Author

Listed:
  • Vincent Buskens
  • Jeroen Weesie

Abstract

This article describes a vignette experiment on the effects of temporal embeddedness and network embeddedness in trust situations. The experiment uses a setting in which a buyer wants to buy a used car from a car dealer. We distinguish between effects on trust of the past relation and the effects of the expected future relation between the buyer and the dealer. A buyer can learn about the trustworthiness of the dealer from past transactions of the dealer. Moreover, the buyer can control the dealer if the buyer and the dealer expect more transactions in the future, because the buyer may sanction the dealer if the dealer would act untrustworthy in the present transaction, for example, by refraining from future transactions. Temporal embeddedness facilitates learning and control through the bilateral relation of the buyer and the dealer, while network embeddedness facilitates learning and control through third parties. In the experiment, subjects are asked to compare different settings for buying a used car, while the relation between the buyer and dealer is varied in these settings. We conclude that both learning and control affect trust at the level of the dyad (temporal embeddedness) as well as at the group-level (network embeddedness).

Suggested Citation

  • Vincent Buskens & Jeroen Weesie, 2000. "An Experiment On The Effects Of Embeddedness In Trust Situations," Rationality and Society, , vol. 12(2), pages 227-253, May.
    • Handle: RePEc:sae:ratsoc:v:12:y:2000:i:2:p:227-253
    DOI: 10.1177/104346300012002004
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/104346300012002004
    Download Restriction: no
    File URL: https://libkey.io/10.1177/104346300012002004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul R. Milgrom & Douglass C. North & Barry R. Weingast*, 1990. "The Role Of Institutions In The Revival Of Trade: The Law Merchant, Private Judges, And The Champagne Fairs," Economics and Politics, Wiley Blackwell, vol. 2(1), pages 1-23, March.
    2. Robert H. Frank & Thomas Gilovich & Dennis T. Regan, 1993. "Does Studying Economics Inhibit Cooperation?," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 159-171, Spring.
    3. Frederick Mosteller, 1951. "Remarks on the method of paired comparisons: I. The least squares solution assuming equal standard deviations and equal correlations," Psychometrika, Springer;The Psychometric Society, vol. 16(1), pages 3-9, March.
    4. Frederick Mosteller, 1951. "Remarks on the method of paired comparisons: II. The effect of an aberrant standard deviation when equal standard deviations and equal correlations are assumed," Psychometrika, Springer;The Psychometric Society, vol. 16(2), pages 203-206, June.
    5. Stern, Hal, 1992. "Are all linear paired comparison models empirically equivalent?," Mathematical Social Sciences, Elsevier, vol. 23(1), pages 103-117, February.
    6. Frederick Mosteller, 1951. "Remarks on the method of paired comparisons: III. A test of significance for paired comparisons when equal standard deviations and equal correlations are assumed," Psychometrika, Springer;The Psychometric Society, vol. 16(2), pages 207-218, June.
    7. Ronald S. Burt & Marc Knez, 1995. "Kinds of Third-Party Effects on Trust," Rationality and Society, , vol. 7(3), pages 255-292, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. László Lőrincz & Sándor Juhász & Rebeka O. Szabó, 2022. "Business transactions and ownership ties between firms," CERS-IE WORKING PAPERS 2216, Institute of Economics, Centre for Economic and Regional Studies.
    2. Blaine G. Robbins, 2022. "Measuring Generalized Trust: Two New Approaches," Sociological Methods & Research, , vol. 51(1), pages 305-356, February.
    3. Christina Neeß, 2015. "Worauf achten Arbeitgeber im Auswahlprozess von Absolventen wirtschaftswissenschaftlicher Studiengänge? Ergebnisse eines faktoriellen Surveys [What do employers look for during the selection proces," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(4), pages 305-323, December.
    4. Reusen, Evelien & Stouthuysen, Kristof, 2020. "Trust transfer and partner selection in interfirm relationships," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    5. Patrick Sturgis & Ian Brunton-Smith & Jonathan Jackson, 2021. "Trust in science, social consensus and vaccine confidence," Nature Human Behaviour, Nature, vol. 5(11), pages 1528-1534, November.
    6. Shiang-Min Meng & Li-Jen Liu & Mikhail Kuritsyn & Vladislav Pechnikov, 2019. "Price Determinants on Used Car Auction in Taiwan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 48-58, January.
    7. Rebecca M. Kuiper & Vincent Buskens & Werner Raub & Herbert Hoijtink, 2013. "Combining Statistical Evidence From Several Studies," Sociological Methods & Research, , vol. 42(1), pages 60-81, February.
    8. Katrin Auspurg & Annette Jäckle, 2017. "First Equals Most Important? Order Effects in Vignette-Based Measurement," Sociological Methods & Research, , vol. 46(3), pages 490-539, August.
    9. Rixt Bijker & Eveline van Leeuwen & Paul (P.R.) Koster, 2019. "To join or not to join? The impact of social interactions on local participation decisions," Tinbergen Institute Discussion Papers 19-003/VIII, Tinbergen Institute.
    10. Fabian Winter & Mitesh Kataria, 2020. "You are who your friends are?," Rationality and Society, , vol. 32(2), pages 223-251, May.
    11. László Lőrincz & Brigitta Németh, 2022. "How Social Capital is Related to Migration Between Communities?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(5), pages 1119-1143, December.
    12. Harris H. Kim, 2009. "Market Uncertainty and Socially Embedded Reputation," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(3), pages 679-701, July.
    13. Rense Corten & Judith Kas & Timm Teubner & Martijn Arets, 2023. "The role of contextual and contentual signals for online trust: Evidence from a crowd work experiment," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    14. Ulf Liebe & Petr Mariel & Heiko Beyer & Jürgen Meyerhoff, 2021. "Uncovering the Nexus Between Attitudes, Preferences, and Behavior in Sociological Applications of Stated Choice Experiments," Sociological Methods & Research, , vol. 50(1), pages 310-347, February.
    15. Ulf Liebe & Veronika A. Andorfer & Patricia A. Gwartney & Jürgen Meyerhoff, 2014. "Ethical Consumption and Social Context: Experimental Evidence from Germany and the United States," University of Bern Social Sciences Working Papers 7, University of Bern, Department of Social Sciences.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dennie van Dolder & Vincent Buskens, 2014. "Individual Choices in Dynamic Networks: An Experiment on Social Preferences," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-16, April.
    2. Mark Glickman, 2001. "Dynamic paired comparison models with stochastic variances," Journal of Applied Statistics, Taylor & Francis Journals, vol. 28(6), pages 673-689.
    3. Éva Orbán-Mihálykó & Csaba Mihálykó & László Koltay, 2019. "Incomplete paired comparisons in case of multiple choice and general log-concave probability density functions," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(2), pages 515-532, June.
    4. Costa, F. P. & Rehman, T., 1999. "Exploring the link between farmers' objectives and the phenomenon of pasture degradation in the beef production systems of Central Brazil," Agricultural Systems, Elsevier, vol. 61(2), pages 135-146, August.
    5. Kwan, Ying Keung & Ip, Wai Cheung & Kwan, Patrick, 2000. "A crime index with Thurstone's scaling of crime severity," Journal of Criminal Justice, Elsevier, vol. 28(3), pages 237-244.
    6. Lendie Follett & Heath Henderson, 2022. "A hybrid approach to targeting social assistance," Papers 2201.01356, arXiv.org.
    7. Smith, Donnie & Capstick, Daniel F., 1976. "Establishing Priorities Among Multiple Management Goals," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(2), pages 1-7, December.
    8. Centola, Damon & van de Rijt, Arnout, 2015. "Choosing your network: Social preferences in an online health community," Social Science & Medicine, Elsevier, vol. 125(C), pages 19-31.
    9. Elliott, Michael A., 2010. "Selecting numerical scales for pairwise comparisons," Reliability Engineering and System Safety, Elsevier, vol. 95(7), pages 750-763.
    10. Csató, László, 2013. "Rangsorolás páros összehasonlításokkal. Kiegészítések a felvételizői preferencia-sorrendek módszertanához [Paired comparisons ranking. A supplement to the methodology of application-based preferenc," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1333-1353.
    11. Graham K. Kenny, 1986. "The Metric Properties of Rating Scales Employed in Evaluation Research," Evaluation Review, , vol. 10(3), pages 397-408, June.
    12. Jose Pina-Sánchez & John Paul Gosling, 2020. "Tackling selection bias in sentencing data analysis: a new approach based on a scale of severity," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(3), pages 1047-1073, June.
    13. Julio González-Díaz & Ruud Hendrickx & Edwin Lohmann, 2014. "Paired comparisons analysis: an axiomatic approach to ranking methods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(1), pages 139-169, January.
    14. Sonika Thakur & Shashi Kanta Varma & Patricia A. Goldey, 2001. "Perceptions of drudgery in agricultural and animal husbandry operations: a gender analysis from Haryana State, India," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(8), pages 1165-1178.
    15. Harman, Wyatte L. & Eidman, Vernon R. & Hatch, Roy E. & Claypool, P. L., 1972. "Relating Farm and Operator Characteristics to Multiple Goals," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 4(1), pages 215-220, July.
    16. Osei, Prince P. & Davidov, Ori, 2022. "Bayesian linear models for cardinal paired comparison data," Computational Statistics & Data Analysis, Elsevier, vol. 172(C).
    17. Araki, Kenji & Hirose, Yoshihiro & Komaki, Fumiyasu, 2019. "Paired comparison models with age effects modeled as piecewise quadratic splines," International Journal of Forecasting, Elsevier, vol. 35(2), pages 733-740.
    18. Lazzarini, Sergio G., 2002. "Order With Some Law: Complementarity VS. Substitution of Formal and Informal Arrangements," Insper Working Papers wpe_24, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    19. Sahand Negahban & Sewoong Oh & Devavrat Shah, 2017. "Rank Centrality: Ranking from Pairwise Comparisons," Operations Research, INFORMS, vol. 65(1), pages 266-287, February.
    20. Jayanti Gupta & Paul Damien, 2002. "Conjugacy class prior distributions on metric‐based ranking models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 64(3), pages 433-445, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ratsoc:v:12:y:2000:i:2:p:227-253. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.