Social Networks and Trust
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
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THEORY AND DECISION LIBRARY General Editors: W. Leinfellner (Vienna) and G. Eberlein (Munich) Series A: Philosophy and Methodology of the Social Sciences Series B: Mathematical and Statistical Methods Series C: Game Theory, Mathematical Programming and Operations Research Series D: System Theory, Knowledge Engineering an Problem Solving
SERIES C: GAME THEORY, MATHEMATICAL PROGRAMMING AND OPERATIONS RESEARCH VOLUME 30
Editor-in Chief: H. Peters (Maastricht University); Honorary Editor: S.H. Tijs (Tilburg); Editorial Board: E.E.C. van Damme (Tilburg), H. Keiding (Copenhagen), J.-F. Mertens (Louvain-la-Neuve), H. Moulin (Rice University), S. Muto (Tokyo University), T. Parthasarathy (New Delhi), B. Peleg (Jerusalem), T. E. S. Raghavan (Chicago), J. Rosenmüller (Bielefeld), A. Roth (Pittsburgh), D. Schmeidler (Tel-Aviv), R. Selten (Bonn), W. Thomson (Rochester, NY). Scope: Particular attention is paid in this series to game theory and operations research, their formal aspects and their applications to economic, political and social sciences as well as to sociobiology. It will encourage high standards in the application of game-theoretical methods to individual and social decision making.
The titles published in this series are listed at the end of this volume.
SOCIAL NETWORKS AND TRUST by
VINCENT BUSKENS Department of Sociology, Utrecht University, Utrecht, The Netherlands
KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW
eBook ISBN: Print ISBN:
0-306-47645-2 1-4020-7010-1
©2002 Kluwer Academic Publishers New York, Boston, Dordrecht, London, Moscow Print ©2002 Kluwer Academic Publishers Dordrecht All rights reserved No part of this eBook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America Visit Kluwer Online at: and Kluwer's eBookstore at:
http://kluweronline.com http://ebooks.kluweronline.com
To my parents, for always stimulating me without pushing me beyond my limits
Contents
xi xiii xv
List of Figures List of Tables Preface 1. INTRODUCTION: EMBEDDED TRUST 1.1 Examples 1.2 Trust 1.2.1 Defining Trust 1.2.2 Trust in Isolated Encounters 1.2.3 Trust in Repeated Transactions 1.2.4 Trust in Social Networks 1.2.5 Arrangements to Reduce the Trust Problem 1.3 Research Questions 1.4 Overview
1 1 5 5 9 10 15 23 26 29
2. SOCIAL NETWORK ANALYSIS AND GAME THEORY 2.1 Social Network Analysis 2.2 Game Theory
31 32 42
3. A GAME-THEORETIC MODEL FOR CONTROL EFFECTS IN SOCIAL NETWORKS 3.1 Introduction 3.2 Construction of the Model 3.3 Solution of the Model 3.4 Properties of the Solution 3.5 Approximation Using Linearization 3.6 Approximation Using Simulation 3.6.1 Methods 3.6.2 Analyses for Simulated Data 3.7 Substantive Implications 3.8 Discussion
53 53 55 62 66 71 74 74 78 86 89
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SOCIAL NETWORKS AND TRUST
4. A STOCHASTIC MODEL FOR INFORMATION DIFFUSION IN SOCIAL NETWORKS 4.1 Introduction 4.2 The Model 4.2.1 Assumptions and Main Theorem 4.2
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