Trustworthiness as an economic asset

Trustworthiness as an Economic Asset<

The evaluation of trust in economic decision making remains on the periphery of mainstream economic analysis and teaching. Yet business managers use trustworthiness in daily exchanges to create competitive advantages for their firms. An exploratory empirical test of Barney and Hansen’s three levels of trust (weak, semistrong, and strong) and Lewicki and Bunker’s portfolio of governance mechanis...

Trustworthiness as an Asset

People posses an innate capability to instinctively evaluate the trustworthiness of other people in their daily lives, and a hardwired tendency to react strongly if they feel betrayed. However, these capabilities do not work in the digital domain, for both obvious and notso-obvious reasons. Therefore, something else is needed. In this paper we explore the prequisites and difficulties that are e...

Trustworthiness and economic performance

Trustworthiness is the foundation for trust, institutions, and per capita output in society. Trustworthiness is primary – a society’s willingness to trust and the quality of its institutions have their origins in the trustworthiness of its citizens. Trustworthiness is therefore the basis for maximizing output in economic exchange and in explaining differences in standards of living around the w...

Tourism as an Economic Develpment Tool

Asset Returns and Economic Risk

Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W Second Quarter 2002 D o financial markets offer higher rewards in the form of average returns for holding risks related to recessions and financial distress in addition to the risks from overall market movements? The answer to this question is related to the way financial economists understand the investment world. Fifteen years ago, f...