publication . Preprint . 2005

Love Thy Neighbor: Bonding versus Bridging Trust

Poulsen, Odile; Svendsen, Gert Tinggaard;
Open Access
  • Published: 02 Sep 2005
We study how trust is generated in society. In a two-sector model, we analyze two communities. In the bonding community people do not trust people outside their regular networks. In the bridging community people choose to trust strangers when they meet them. The hypothesis is that when trust is only bonding, it cannot accumulate. Our theoretical contribution is to show that when trust is only bonding then the economy’s level of trust moves to an unstable equilibrium that may under certain conditions ‡uctuate forever. If, however, trust is also bridging, then trust will accumulate. Future research should seek to establish the appropriate institutional framework f...
ACM Computing Classification System: Data_MISCELLANEOUS
free text keywords: Trust; two-sector model; chaos, jel:A12, jel:C61, jel:D90, jel:O41
31 references, page 1 of 3

Becker, G. (1996), Accounting for Tastes, Cambridge, MA: Harvward University Press and New York: Cambridge University Press.

Benhabib, J., and K. Nishimura, (1985): “Competitive Equilibrium Cycles”, Journal of Economic Theory, 35: 284-306.

Bjørnskov, C. (2005), ‘The economic use of social capital: the income relation’, in M. Paldam, and G.T. Svendsen (eds.), Trust, Social Capital and Economic Growth: An International Comparison, Cheltenham, UK: Edward Elgar, Ch 7 (forthcoming).

Boix, C. and D.N. Posner (1998), ‘Social capital: explaining its origins and e¤ects on government performance’, British Journal of Political Science, 28 (4), 686–93. [OpenAIRE]

Bourdieu, P. (1986): “The Forms of Capital” in Handbooks of Theory and Research for the Sociology of Education, G. Richardson, Greenwood Press, Westport.

Burt, R.S.. (2001): “Structural Holes versus Network Closure as Social Capital”,in Social Capital, Theory and Research, N. Lin, K. Cook and R.S. Burt (eds), Aldine de Gruyter, New York Coleman, J.S. (1988), ‘Social capital in the creation of human capital’, American Journal of Sociology, 94, 95–121.

Coleman, J.S. (1990), Foundations of Social Theory, Harvard University Press, Cambridge.

Drugeon, J.P. and A. Venditti, (1998): “Intersectoral External E¤ects, Multiplicities and Indeterminacies II: The Long -Run Growth Case”, Working Paper 98A20, GREQAM.

Drugeon, J.P., Poulsen O., and A. Venditti, (2003): “On Intersectoral Allocations, Factor Substitutability and Multiple Long-Run Growth Paths”, Economic Theory, 21: 175-183. [OpenAIRE]

Durkheim, E. ([1893] 1984), The Division of Labour in Society, New York: Free Press.

Fukuyama, F. (1995a), Trust. The Social Virtues and the Creation of Prosperity, London: Hamish Hamilton.

Fukuyama, F. (1995b), ‘Social capital and the global economy’, Foreign Affairs, 74 (5), 89–103.

Granovetter, M.S. (1985), ‘Economic action, social structure and embeddedness’, American Journal of Sociology, 9, 481–510. [OpenAIRE]

Green, D.P. and I. Shapiro (1994), Pathologies of Rational Choice. Theory. A Critique of Applications in Political Science, New Haven, CT: Yale University Press.

Greif, A. (1989). ‘Reputation and coalition in medieval trade: evidence on the Maghribi traders.’ Journal of Economic History 49: 857-82.

31 references, page 1 of 3
Any information missing or wrong?Report an Issue