A Formal Model for Trust in Dynamic Networks

We propose a formal model of trust informed by the Global Computing scenario and focusing on the aspects of trust formation, evolution, and propagation. The model is based on a novel notion of trust structures which, building on concepts from trust management and domain theory, feature at the same time a trust and an information partial order

Trust in Network Relationships

Networks are a central issue in management and governance literature in the last years. This contribution discusses the advantages of networks as a management model, introduces different models of trust and their role in establishing and stabilisation of network relationship and describes trust supporting structures and problematic aspects of trust. Finally it pleads for a combination of trust and awareness to avoid problems connected with the concept of trust.network; trust; network relationship; coordination.

College Education and social trust. An Evidence-based Study on the Causal Mechanisms

This paper examines the influence of college education on social trust at the individual level. Based on the literature of trust and social trust, we hypothesize that life experience/development since adulthood and perceptions of cultural/social structures are two primary channels in the causal linkage between college education and social trust. In the first part of the empirical study econometric techniques are employed to tackle the omitted-variable problem and substantial evidence is found to confirm the positive effect of college education. In the second part contemporary information is used to examine the hypothetical mechanisms in the causal inference. That life experience is a primary channel via which college education promotes social trust fails to find support in our examination, while individual perceptions of cultural and social structures explain up to 77 percent of the causal effect.

Globalization and Trust: Theory and Evidence from Cooperatives

We study the effect of globalization on the stock of trust in organizations. We present a simple model of endogenous trust and show that contrary to centralized hierarchies (pure limited liability firms), decentralized organizational structures (cooperatives) foster the emergence of trust. We treat organizations as directly observable ‘summary statistics’ for underlying trust and ask what will be the fate of trust as the world becomes increasingly globalized. Because the cooperative is an intrinsically less efficient organizational form and globalization implies harsher competitive pressures, conventional wisdom suggests that the viability of cooperatives is in jeopardy. We show that this is not necessarily true. If the increase in competition is bundled with an increase in uncertainty and risk, the cooperative may become a more efficient organizational form. We conclude that globalization does not necessarily erode trust. The case of Mondragón Corporación Cooperativa is used to motivate assumptions and illustrate the results.http://deepblue.lib.umich.edu/bitstream/2027.42/39978/3/wp592.pd

Trust and Contracting in Agri-Food Hybrid Structures

The paper aims at examining the hypothesis that the influence of trust on contract can be thought of as a dynamic factor of organizational choices in supply chains. The relationship between contract and trust is delineated on the basis of institutional environment, contractual incompleteness, safeguards and restrictive provisions. The interaction between individual and system elements in the formation of trust and its influence in hybrid contracting is considered. According to a New Institutional Economics approach and a theoretical framework is proposed. Empirical evidence is provided by a case study regarding an Italian retailer company establishing hybrid structure with its suppliers. Investments in suppliers selection provide the basis for trust supporting relationships which economize on negotiating and litigation costs.hybrid structures, trust, contract, Agribusiness, Q13, D23,

Combining Savings Groups with Agricultural Marketing in Tanzania

Preliminary findings of the Catholic Relief Services (CRS) programme in Tanzania suggest that by federating Savings Groups into collective marketing structures, the capacity of their members to engage in joint marketing is enhanced. The federated market structure leverages the trust and confidence, created amongst group members through regular financial transactions, to build a more solid platform to joint marketing structures

Less Trust Means More Trusts

The word “trust” has multiple meanings. In everyday speech, it refers to a feeling of confidence associated with integrity, such as trusting that a friend will keep a secret. In the financial context, some law students, lawyers and lucky individuals also understand that a trust is a near-magical device that splits legal and equitable title. A trustee holds formal legal title to property for the benefit of a beneficiary simply because the grantor declares it to be so. By turning the spotlight on “trust,” in both senses of the word, one can discern fault lines in contemporary U.S. political and legal structures. These are made even plainer when examined through the lens of ongoing litigation involving human embryos created by actress Sofia Vergara and her former fiancé. Just as termites can enter homes through foundational cracks or wood brought from the outside, interpersonal, community or structural confidence may erode in the face of hostility, indifference or inequality. Similarly, as termites can slowly damage a home over a period of years before the harm becomes visible, the beneficial form of ownership known as a trust gradually–and then suddenly–has morphed almost beyond recognition over the last twenty-five years. Eaten away are the traditional limitations on trust duration, trust modification and the type of property that can be held in trust. In some states, irrevocable trusts can last forever, be decanted to another trust with entirely different terms, or even hold legal “title” to human embryos. These changes to centuries of trust law reveal changing attitudes about wealth, property ownership, and personal autonomy. If society truly values equal opportunity for all people, then trust–and trusts–need attention

Trust, Contracting, and Adaptation in Agri‐Food Hybrid Structures

The paper considers the relationship between trust and governance structure from a Transaction Cost Economics perspective. The role of trust in the coordinating decisions is variously conceptualized according to the theoretical view adopted by the scholars. The present study adopt the three‐level schema introduced by Williamson (1996) and suggest that determinants of trust may operate both at institutional and governance structure level. The analytical framework depicted maintains that trust may determine a reduction of ex post transaction cost in the adaptation of hybrid structure. As a consequence trust appears to be able to extend the range of existence of the hybrids. The empirical part of the study is dedicated to a case study which illustrates the emerging of conditional trust (Fritz et al., 2008) and the role of trust in the adaptation process.hybrid, conditional trust, adaptation, contractual relationship., Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Industrial Organization, Research Methods/ Statistical Methods,

Globalization and Trust: Theory and Evidence from Cooperatives

We study the effect of globalization on the stock of trust in organizations. We present a simple model of endogenous trust and show that contrary to centralized hierarchies (pure limited liability firms), decentralized organizational structures (cooperatives) foster the emergence of trust. We treat organizations as directly observable ‘summary statistics’ for underlying trust and ask what will be the fate of trust as the world becomes increasingly globalized. Because the cooperative is an intrinsically less efficient organizational form and globalization implies harsher competitive pressures, conventional wisdom suggests that the viability of cooperatives is in jeopardy. We show that this is not necessarily true. If the increase in competition is bundled with an increase in uncertainty and risk, the cooperative may become a more efficient organizational form. We conclude that globalization does not necessarily erode trust. The case of Mondragón Corporación Cooperativa is used to motivate assumptions and illustrate the results.