Defining Trust Using Expected Utility Theory

• Arai Kazuhiro

  Hitotsubashi University

Abstract

Trust has been discussed in many social sciences including economics, psychology, and sociology. However, there is no widely accepted definition of trust. Inparticular, there is no definition that can be used for economic analysis. This paper regards trust as expectation and defines it using expected utility theory together with concepts such as betrayal premium. In doing so, it rejects the widely accepted black-and-white view that (un) trustworthy people are always (un)trustworthy. This paper also discusses various determinants and properties of trust on the basis of the idea that trust is not simply a matter of intention.

Journal

• Hitotsubashi Journal of Economics

  Hitotsubashi Journal of Economics 50 (2), 99-118, 2009-12

  Hitotsubashi University

Keywords

• Definitions of Trust
• Distrust Premium
• Betrayal Premium
• Properties of Trust
• Expected Utility Theory

Details

• CRID: 1390853649796035840
• NII Article ID: 110007629939
• NII Book ID: AA00207547
• DOI: 10.15057/18045
• HANDLE: 10086/18045
• ISSN: 0018280x
• Text Lang: en
• Data Source:
  • JaLC
  • IRDB
  • CiNii Articles
  • KAKEN
• Abstract License Flag: Allowed