Trust: Forms, Foundations, Functions & Failures

Trust is an elusive concept, meaning different things to different people, and so needs to be clearly defined. By focusing on relations within and between firms, this text undertakes to produce a clearer definition of trust and its role in the economy. It deals with a range of questions such as - what are the roles of trust? What can we trust in? Can trust serve as an instrument for the governance of relations? Is trust a substitute, a precondition or an outcome of contracts? It then goes on to analyse what trust is based on, what its limits are, how it grows and how it can also break down. The role of intermediaries is also discussed. The book argues that trust goes beyond calculative self-interest and that blind, unconditional trust is unwise. It then examines the paradox of how trust can be non-calculative and yet, not blind. It also reveals ways to measure and model trust, its antecedents and its consequences.