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Is it Trust We Model? An Attempt to Calculate the Non-CalculativeStephanie RosenkranzUniversity of Utrecht - Utrecht University School of Economics; Centre for Economic Policy Research (CEPR) Utz WeitzelRadboud University Nijmegen - Economics Department; University of Utrecht - Utrecht University School of Economics May 2005 Tjalling C. Koopmans Research Institute Discussion Paper No. nr:05-12 Abstract: In this paper we characterize a situation in which non-calculative trust has to play a role in the decision to cooperate. We then analyze the given situation in game theoretical terms and distinguish those aspects of players' decisions that are cooperative from those that may be interpreted as being trustful. We argue that the cooperative aspect relates to incentives while the trustful (and thus non-calculative) aspect of the decision is related to the framing of the situation.
Number of Pages in PDF File: 28 Keywords: trust, framing, focal points, alliances, cooperation JEL Classification: C72, D80, D74, Z13 working papers seriesDate posted: October 19, 2005Suggested CitationContact Information
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