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The Development of Trust

Authors/Editors: Kretschmer, T.
Puranam, P.
Vanneste, B.
Published: 2009
Type: Working Papers
Published by: SSRN


A commonly held view is that trust increases over time in relationships. However, empirical evidence suggests that trust and relationship duration are only weakly correlated if at all. Using a formal model of Bayesian updating of trustworthiness, we specify four mechanisms that influence the magnitude and sign of the correlation between trust and relationship duration. We show that it is only under some conditions that trust increases with relationship duration. Under other conditions, trust may stay unchanged or even decline over time.

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