Social Networks and Trust

Description

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. 1402070101......Page 1 Contents......Page 8 List of Figures......Page 12 List of Tables......Page 14 Preface......Page 16 1.1 Examples......Page 18 1.2.1 Defining Trust......Page 22 1.2.2 Trust in Isolated Encounters......Page 26 1.2.3 Trust in Repeated Transactions......Page 27 1.2.4 Trust in Social Networks......Page 32 1.2.5 Arrangements to Reduce the Trust Problem......Page 40 1.3 Research Questions......Page 43 1.4 Overview......Page 46 2. SOCIAL NETWORK ANALYSIS AND GAME THEORY......Page 48 2.1 Social Network Analysis......Page 49 2.2 Game Theory......Page 59 3.1 Introduction......Page 70 3.2 Construction of the Model......Page 72 3.3 Solution of the Model......Page 79 3.4 Properties of the Solution......Page 83 3.5 Approximation Using Linearization......Page 88 3.6.1 Methods......Page 91 3.6.2 Analyses for Simulated Data......Page 95 3.7 Substantive Implications......Page 103 3.8 Discussion......Page 106 4.1 Introduction......Page 110 4.2.1 Assumptions and Main Theorem......Page 113 4.2.2 Diffusion Times and Centrality Measures......Page 118 4.3 Analytic Results for Diffusion Times......Page 121 4.4.1 Methods......Page 126 4.4.2 Analyses for Simulated Data......Page 129 4.5 Substantive Implications Related to Trust......Page 136 4.6 Discussion......Page 138 5.1 Introduction......Page 142 5.2.1 Description of the Data......Page 147 5.2.2 Operationalizations......Page 149 5.2.3 Summary Statistics of the Variables......Page 159 5.2.4 Hypotheses......Page 160 5.3.1 Methods......Page 163 5.3.2 Tests of the Hypotheses......Page 164 5.3.3 Interpretation of the Network Effects......Page 169 5.4 Conclusions and Discussion......Page 175 6.1 Introduction......Page 180 6.2.1 The Setting......Page 183 6.2.2 Independent Variables......Page 184 6.2.3 Method of Paired Comparison......Page 187 6.2.4 Vignette Selection......Page 190 6.2.5 Subject Characteristics......Page 194 6.3 Data Collection......Page 195 6.4.1 Methods......Page 196 6.4.2 Tests of the Hypotheses......Page 198 6.4.3 Presentation Effects......Page 202 6.4.4 Subject Effects......Page 203 6.5 Conclusions and Discussion......Page 204 7.1 Results......Page 208 7.2 Discussion......Page 215 7.3 Suggestions for Further Research......Page 221 A– Mathematical Details......Page 230 B– Network Construction Methods for Valued Networks......Page 242 C– Information on the MAT95 Questionnaire......Page 246 D– The Vignette Experiment......Page 252 References......Page 262 About the Author......Page 278 G......Page 280 S......Page 281 Z......Page 282 E......Page 284 R......Page 285 W......Page 286