Trust and Performance: Exploring Socio-Economic Mechanisms in the “Deep” Network Structure with Agent-Based Modeling

Lin Gao

MPRA Paper from University Library of Munich, Germany

Abstract: This paper extends the concept of interaction platforms and explores the evolution of interaction and cooperation supported by individuals’ changing trust and trustworthiness on directed weighted regular ring network from the angle of micro scope by using agent-based modeling. This agent-based model integrates several considerations below via a relatively delicate experimental design: 1) a characteristic of trust is that trust is destroyed easily and built harder (Slovic, 1993); 2) trustworthiness may be reflected on both strategy decision and payoff structure decision; 3) individuals can decide whether or not to be involved in an interaction; 4) interaction density exists, not only between neighbors and strangers (Macy and Skvoretz, 1998), but also within neighbors; 5) information diffusion. In this agent-based model, marginal rate of exploitation of original payoff matrix and relative exploitation degree between two payoff matrices are stressed in their influence of trust-destroying; influence of observing is introduced via imagined strategy; relationship is maintained through relationship maintenance strength, and so on. This paper treats number of immediate neighbors, degree of embeddedness in social network, mutation probability of payoff matrix, mutated payoff matrix, proportion of high trust agents and probabilities of information diffusion within neighborhood and among non-neighbors as important aspects happening on interaction platforms, and the influences of these factors are probed respectively on the base of a base-line simulation.

Keywords: Trust; trustworthiness; directed weighted regular ring network; agent-based modeling; marginal rate of exploitation; relative exploitation degree; imagined strategy; relationship maintenance strength; number of neighbors; degree of embeddedness in social network; mutation of payoff matrix; information diffusion; social mobility; institutional quality; evolution of interaction; evolution of cooperation (search for similar items in EconPapers)
JEL-codes: B52 C63 D82 D85 (search for similar items in EconPapers)
Date: 2016-11-21
New Economics Papers: this item is included in nep-cmp, nep-gth, nep-hme and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/75214/1/MPRA_paper_75214.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:75214

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().