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Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust

Author

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  • Rosanas, Jose M.

    (IESE Business School)

Abstract

This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.

Suggested Citation

  • Rosanas, Jose M., 2004. "Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust," IESE Research Papers D/567, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0567
    as

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    References listed on IDEAS

    as
    1. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
    2. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    3. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
    4. Marek Korczynski, 2000. "The Political Economy of Trust," Journal of Management Studies, Wiley Blackwell, vol. 37(1), pages 1-1, January.
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    Cited by:

    1. Argandoña, Antonio, 2005. "Firm, market economy and social responsibility," IESE Research Papers D/600, IESE Business School.
    2. Josep Rosanas, 2008. "Beyond Economic Criteria: A Humanistic Approach to Organizational Survival," Journal of Business Ethics, Springer, vol. 78(3), pages 447-462, March.
    3. Rosanas, Josep M., 2006. "Beyond economic criteria: A humanistic approach to organizational survival," IESE Research Papers D/654, IESE Business School.

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    Keywords

    Trust; Bounded rationality; Value systems; Behavioral decision-making;
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