Share:


Computational trust management in economics phenomena research

    Denis Trček Affiliation

Abstract

Economics phenomena are notably governed by dynamic, non-linear, bottom-up processes emerging from agents’ interactions. Therefore traditional top-down approaches provide a rather limited insight into these phenomena. Further, research in economics has been mostly focused on addressing tangible factors, while human agents in economic settings often do not adhere to rational reasoning, and trust is one such kind of reasoning. Thanks to recent technological advancements new approaches are enabled, and this paper proposes a novel and anticipatory research methodology for studying economics phenomena that enables inclusion of trust. The methodology, called auxiliary composite simulations, builds upon recent advancements in computational trust management. By doing so it enables bottom-up simulations of trust driven economic phenomena. The paper provides also epistemic evaluation of the methodology and ends up with an example application of the proposed apparatus.

Keyword : economics research, agent technologies, trust, computational trust management, simulations

How to Cite
Trček, D. (2018). Computational trust management in economics phenomena research. Technological and Economic Development of Economy, 24(6), 2241-2254. https://doi.org/10.3846/20294913.2017.1347907
Published in Issue
Nov 21, 2018
Abstract Views
2
PDF Downloads
2
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Anderson, L. R.; Mellor, J. M.; Milyo, J. 2006. Induced heterogeneity in trust experiments, Experimental Economics 9(3): 223–235. https://doi.org/10.1007/s10683-006-9124-2

Arthur, W. B. 2006. Out-of-equilibrium economics and agent-based modelling, in Handbook of computational economics vol. 2, 1551–1564. Amsterdam, North-Holland: Elsevier. https://doi.org/10.1016/S1574-0021(05)02032-0

Arthur, W. B.; Holland, H. H.; LeBaron, B.; Palmer, R.; Taylor, P. 1996. Asset pricing under endogenous expectation in an artificial stock market. Working Papers 96-12-093, Santa Fe Institute, December 1996.

Ashraf, N.; Bohnet, I.; Piankov, N. 2006. Decomposing trust and trustworthiness, Experimental Economics 9(3): 193–208. https://doi.org/10.1007/s10683-006-9122-4

Axtell, R. 2005. The complexity of exchange, The Economic Journal 115(504): F193–F210. https://doi.org/10.1111/j.1468-0297.2005.01001.x

Bachmann, R. 2006. Handbook of trust research. Cheltenham: Edward Elgar Publishing. https://doi.org/10.4337/9781847202819

Barrio, R. A.; Govezensky, T.; Ruiz-Gutiérrez, É; Kaski, K. K. 2017. Modelling trading networks and the role of trust, Physica A: Statistical Mechanics and its Applications 471: 68–79. https://doi.org/10.1016/j.physa.2016.11.144

Bode, E.; Mutl, J. 2010. Testing nonlinear new economic geography models, Economics Series 253. Vienna: Institute for Advanced Studies.

Calabuig, V.; Fatas, E.; Olcina, G.; Rodriguez-Lara, I. 2016. Carry a big stick, or no stick at all: Punishment and endowment heterogeneity in the trust game, Journal of Economic Psychology 57: 153–171. https://doi.org/10.1016/j.joep.2016.09.006

Cerina, F.; Mureddu, F. 2014. Is agglomeration really good for growth?, Journal of Urban Economics 84: 9–22. https://doi.org/10.1016/j.jue.2014.08.006

Cox, J. C.; Sadiraj, K.; Sadiraj, V. 2008. Implications of trust, fear, and reciprocity for modeling economic behaviour, Experimental Economics 11(1): 1–24. https://doi.org/10.1007/s10683-006-9156-7

Ferrin, D. L.; Dirks, K. T., 2003. The use of rewards to increase and decrease trust: mediating processes and differential effects, Organization Science 14(1): 18–31. https://doi.org/10.1287/orsc.14.1.18.12809

Filkowski, M. M.; Anderson, I. W.; Haas, B. W. 2016. Trying to trust: brain activity during interpersonal social attitude change, Cognitive, Affective, & Behavioral Neuroscience 16(2): 325–338. https://doi.org/10.3758/s13415-015-0393-0

Fujita, M.; Krugman, P.; Venables, A. 1999. The spatial economy: cities, regions and international trade. New York: John Wiley.

Fukuyama, F. 1995. Trust: the social virtues and the creation of prosperity. New York: Free Press.

Jelenc, D.; Hermoso, R.; Sabater-Mir, J.; Trček, D. 2013. Decision making matters: a better way to evaluate trust models, Knowledge Based Systems 52: 147–164. https://doi.org/10.1016/j.knosys.2013.07.016

Johansson, B.; Quigley, J. M. 2004. Agglomeration and networks in spatial economics, Papers in Regional Science 83(1): 165–176. https://doi.org/10.1007/s10110-003-0181-z

Kahneman, D.; Tversky, A. 1979. Prospect theory: an analysis of decision under risk, Econometrica: Journal of the Econometric Society 47(2): 263–291. https://doi.org/10.2307/1914185

Keck, S.; Karelaia, N. 2012. Does competition foster trust? The role of tournament incentives, Experimental Economics 15(1): 204–228. https://doi.org/10.1007/s10683-011-9297-1

Keeley, B. 2007. Human capital: how what you know shapes your life. OECD, Paris. https://doi.org/10.1787/9789264029095-en

Kimura, M. 2002. The use of agent-based models in regional science: PhD thesis. Cornell University.

Klos, T. B.; Nooteboom, B. 2001. Agent-based computational transaction cost economics, Journal of Economic Dynamics and Control 25(34): 503–526. https://doi.org/10.1016/S0165-1889(00)00034-8

Koesrindartoto, D.; Sun, J.; Tesfatsion, L. 2005. An agent-based computational laboratory for testing the economic reliability of wholesale power market, Power Engineering Society General Meeting, 1 August 2005, San Francisco, US.

Kramer, R. M; Tyler, T. R. 1996. Trust in organizations: frontiers of theory and research. Thousdand Oaks: SAGE Publications Incorporated.

Kurzban, R.; Rigdon, M. L.; Wilson, B. J. 2008. Incremental approaches to establishing trust, Experimental Economics 11(4): 370–389. https://doi.org/10.1007/s10683-007-9173-1

Leombruni, R.; Richiardi, M. 2003. Industry and labor dynamics: the agent-based computational economics approach, Proceedings of the Wild@ace 2003 Workshop, 3–4 October 2003, Torino, Italy. https://doi.org/10.1142/5706

Mori, T.; Smith, T. E. 2015. On the spatial scale of industrial agglomerations, Journal of Urban Economics 89: 1–20. https://doi.org/10.1016/j.jue.2015.01.006

Ortmann, A.; Fitzgerald, J.; Boeing, C. 2000. Trust, reciprocity, and social history: a re-examination, Experimental Economics 3(1): 81–100. https://doi.org/10.1023/A:1009946125005

Pessoa, L. 2008. On the relationship between emotion and cognition, Nature Reviews Neuroscience 9(2): 148–158. https://doi.org/10.1038/nrn2317

Putnam, R. D. 1995. Bowling alone: America’s declining social capital, Journal of Democracy 6(1): 65–78. https://doi.org/10.1353/jod.1995.0002

Rosenthal, S.; Strange, W. 2008. The attenuation of human capital spillovers, Journal of Urban Economics 64(2): 373–389. https://doi.org/10.1016/j.jue.2008.02.006

Schotter, A.; Sopher, B. 2006. Trust and trustworthiness in games: an experimental study of intergenerational advice, Experimental Economics 9(2): 123–145. https://doi.org/10.1007/s10683-006-5386-y

Song, F. 2006. Trust and reciprocity in inter-individual versus inter-group interactions: the effects of social influence, group dynamics, and perspective biases, Experimental Economics 9(2): 179–180. https://doi.org/10.1007/s10683-006-7051-x

Tjosvold, D. 1985. Dynamics within participation: an experimental investigation, Group & Organization Management 10(3): 260–277. https://doi.org/10.1177/105960118501000304

Trček, D. 2011. Trust management in the pervasive computing era, IEEE Security & Privacy 9(4): 52–55. https://doi.org/10.1109/MSP.2011.95

Trček, D. 2012. An integrative architecture for a sensor-supported trust management system, Sensors 12(8): 10774–10787. https://doi.org/10.3390/s120810774

Trček, D. 2014. Qualitative assessment dynamics – complementing trust methods for decision making, International Journal of Information Technology & Decision Making (IJITDM) 13(01): 155–173. https://doi.org/10.1142/S0219622014500072

Trichet, J. C. 2010. Reflections on the nature of monetary policy non-standard measures and finance theory, in Opening Address at the 6th ECB Central Banking Conference, 18 November 2018, Frankfurt am Main, Germany.

Zupančič, E.; Trček, D. 2017. QADE: a novel trust and reputation model for handling false trust values in e-commerce environments with subjectivity consideration, Technological and Economic Development of Economy 23(1): 81–110. https://doi.org/10.3846/20294913.2015.1022810

Zürn, M.; Topolinski, S. 2017. When trust comes easy: articulatory fluency increases transfers in the trust game, Journal of Economic Psychology 61(2017): 74–86. https://doi.org/10.1016/j.joep.2017.02.016