European Business Schools Librarian's Group

IESE Research Papers,
IESE Business School

No D/567: Bounded rationality, value systems and time-inconsistency of preferences as rational foundations for the concept of trust

Jose M. Rosanas ()
Additional contact information
Jose M. Rosanas: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.

Keywords: Trust; Bounded rationality; Value systems; Behavioral decision-making

32 pages, September 15, 2004

Download statistics

Questions (including download problems) about the papers in this series should be directed to Noelia Romero ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 15:47:28.