Social Networks and Trust discusses two possible explanations for
the emergence of trust via social networks. If network members can
sanction untrustworthiness of actors, these actors may refrain from
acting in an untrustworthy manner. Moreover, if actors are informed
regularly about trustworthy behavior of others, trust will grow
among these actors.
A unique combination of formal model building and empirical
methodology is used to derive and test hypotheses about the effects
of networks on trust. The models combine elements from game theory,
which is mainly used in economics, and social network analysis,
which is mainly used in sociology.
The hypotheses are tested (1) by analyzing contracts in information
technology transactions from a survey on small and medium-sized
enterprises and (2) by studying judgments of subjects in a vignette
experiment related to hypothetical transactions with a used-car
dealer.
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