Overview
The behavioral economics of trust examines how psychological factors shape our perceptions and decisions regarding trust in economic contexts. Trust is not just about honesty; it encompasses reliability, competence, and emotional connections. Understanding these elements is crucial for effective neg...
Key Terms
Example: A trustworthy person keeps their promises.
Example: If someone helps you, you feel inclined to help them back.
Example: In many cultures, it is a norm to greet others politely.
Example: Investors may choose safer stocks to avoid potential losses.
Example: Confirmation bias leads people to favor information that confirms their beliefs.
Example: A transparent company shares its financial reports with stakeholders.
Related Topics
Game Theory
Study of strategic interactions where the outcome depends on the actions of multiple agents.
advancedSocial Psychology
Explores how individuals' thoughts, feelings, and behaviors are influenced by the presence of others.
intermediateNegotiation Strategies
Techniques and methods used to reach agreements between parties.
intermediateKey Concepts
TrustworthinessSocial NormsReciprocityRisk Aversion