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Foundations of trust, interpersonal relationships and communities

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  • Guido Merzoni
  • Federico Trombetta

Abstract

We claim that the emergence of trust is best explained by relation-based arguments. After brie fly surveying alternative explanations which concentrate on material payoffs both with self-centered and with other-regarding preferences, we examine theoretical discussions of cooperative and trust behavior framed in terms of attitudes, esteem and, most of all, intentions. An important implication of all these approaches is that the relational element makes human inter actions different, as it is also documented by a lot of evidence produced by neuroeconomic experiments. When trust is based on relations and on the recognition of the others’ intentions, efficient outcomes are brought about by the agents’ (at least) partial disregard for the maximization of their material payoff and by heavily personalized interactions. Both these features are distinctive of the functioning of communities and the particular way how they work and solve coordination problems.

Suggested Citation

  • Guido Merzoni & Federico Trombetta, 2012. "Foundations of trust, interpersonal relationships and communities," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1201, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    • Handle: RePEc:dis:wpaper:dis1201
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    Cited by:

    1. Guido Merzoni & Federico Trombetta, 2016. "The cost of doing the right thing. A model of populism with rent-seeking politicians and the economic crisis," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1602, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).

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    More about this item

    Keywords

    trust; community; intentions;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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