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The Trust In Extension Of Transaction: An Institutional View

Posted on:2005-03-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:J L YeFull Text:PDF
GTID:1116360125955128Subject:Political economy
Abstract/Summary:PDF Full Text Request
The human's transactions are based on trust. The extension of trust bounds the extension of transaction. Fortunately, human's rationality will evolve series of institutions and organizations to extend the bound of trust, and then of transaction. Therefore, the process of extending in transaction is the same process of extending in trust. But the mainstream economics haven't studied trust for long time. Until rising of Information Economics, Game Theory, New Institutional Economics and Evolution Economics, the problem of how the agents play honest under asymmetric information came into seizing most economists' attentions, And mounts of papers and works emergence. Using those researches, this dissertation argues the mechanism of how the trust forms in the process of transaction extending ground on the viewpoint of institutions and organizations.We define trust as the co-expectation of cooperation and equilibriums of cooperation strategy, while the institutions and organizations, which ensure the transaction trust, are just embodiment of the equilibriums. All of the transactions canbe classified in fore essential ranks--precondition of transaction, intergenerationtransaction, transaction in acquaintance society and transaction in anonymous society. Property right is the foundation of all transaction. It's the outcome of trust the people recognize and respect property rights each other. The conditions involve the occupancy becoming the common knowledge, sufficient proportion people punishing distrust, and the "free riders" of trust order restraining in low enough.Intergeneration transactions are preconditions of human's reproducing, and it's trust rely on the family which as an institution. Family, especially nuclear family takes a basic function that provides an efficient intergeneration learning, which makes "grandson's restrain" possible. Hence, even an ego would trust in intergeneration.In acquaintance society, the transaction trust mainly ground on bilateral mechanism and multilateral mechanism. Under bilateral mechanism, distinguishable firms are the important conditions of trust. And guilds and coalition support the efficient multilateral mechanism, which ensure the trust of interior transaction.Trust in anonymous society depends upon the authority and its costs. The trust of authority itself can be insuring under sufficient selectivity. Among the condition of insuring authorities' trust, it's most rigors for autocratic authority, then democratic authority, and it's most easy for opening authority.
Keywords/Search Tags:Trust, Transaction Extension, Institution, Organization, Cooperation Equilibrium
PDF Full Text Request
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