Cost of Distrust
Individuals in higher-trust societies spend less to protect themselves from being exploited in economic transactions. Trust is an economical substitute for extensive contracts, litigation, and monitoring in transactions and thus economizes on transaction costs.
This quote taken from this paper, published by IBM, explain models of trust and reputation systems, Experimental Games for the design of reputation management systems
One response so far
interesting.
I have been working on this topic for the last 30 years.
There is now a model that provides approximate $ figures for cost of distrust…. not an after-the-facts calculation but a gap on a trust-map that tells about it before the money is gone.
Let’s keep in touch
Rene