It's Just Not About Payoffs

3 May Social/Political

thesleepingdragon2k says:

Trust is not a commodity to be bartered – it is a blossom to be nurtured. Partha Dasgupta and other eminent economists have modelled trust in game-theoretic form, but I think such exercises only capture ‘low-brow’ trust, namely, a trust that is induced by incentives. The trust that my family had with Yee Poh and others with their Ah Sowhs cannot be modeled. Or to use economic jargon: ‘payoff functions are degenerate’. Such ‘high-brow’ trust does not arise from forward-looking expectations of incentives, but from history. It arises from the way we treat others. So trust takes time to build, but destruction can be swift.

An excellent piece of writing from a LSE postgraduate!

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