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Trust in Cyber-societies pp 83–109Cite as

Adaptive Trust and Co-operation: An Agent-Based Simulation Approach

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Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 2246))

Abstract

Inter-firm relations have increasingly been analyzed by means of transaction cost economics (TCE). However, as has been widely acknowledged, TCE does not include dynamics of learning, adaptation or innovation, and it does not include trust. It assumes that efficient outcomes arise, while that may be in doubt, due to complexity and path-dependency of interactions between multiple agents that make, continue and break relations in unpredictable ways. We use the methodology of Agent-Based Computational Economics (ACE) to model how co-operation, trust and loyalty emerge and shift adaptively as relations evolve in a context of multiple, interacting agents. Agents adapt their trust on the basis of perceived loyalty. They adapt the weight they attach to trust relative to potential profit and they adapt their own loyalty, both as a function of realized profits. This allows us to explore when trust and loyalty increase and when they decrease, and what the effects are on (cumulative) profit.

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Author information

Authors and Affiliations

  1. Erasmus University Rotterdam, The Netherlands

    Bart Nooteboom

  2. TNO Institute of Applied Physics, The Netherlands

    Tomas Klos

  3. Groningen University, The Netherlands

    Renè Jorna

Authors
  1. Bart Nooteboom
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  2. Tomas Klos
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  3. Renè Jorna
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Editor information

Editors and Affiliations

  1. Group of Artificial Intelligence, Cognitive and Interacting Modelling, National Research Council, Institute for Cognitive Science and Technology, Viale Marx 15, 00137, Rome, Italy

    Rino Falcone

  2. Department of Computer Science, North Carolina State University, 940 Main Campus Drive, Suite 110, 27606, Raleigh, NC, USA

    Munindar Singh

  3. Department of Economics and Business Administration, Free University Amsterdam, De Boelelaan 1105, 1081, HV Amsterdam, The Netherlands

    Yao-Hua Tan

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© 2001 Springer-Verlag Berlin Heidelberg

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Nooteboom, B., Klos, T., Jorna, R. (2001). Adaptive Trust and Co-operation: An Agent-Based Simulation Approach. In: Falcone, R., Singh, M., Tan, YH. (eds) Trust in Cyber-societies. Lecture Notes in Computer Science(), vol 2246. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-45547-7_6

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  • DOI: https://doi.org/10.1007/3-540-45547-7_6

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-43069-8

  • Online ISBN: 978-3-540-45547-9

  • eBook Packages: Springer Book Archive

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