Trust as a Governance Device

  • Bart Nooteboom
Part of the Studies in Economic Ethics and Philosophy book series (SEEP)


In spite of its importance, and in contrast with the literatures in sociology and management, trust has been neglected in the economic literature, with some exceptions (Arrow 1974, Buckley and Casson 1988). One reason fir this neglect probably is that while economists strive for analytical precision, trust appears to be an irredeemably imprecise notion. And indeed it is a complex and slippery concept; a minefield of potential misunderstanding. Different people can mean different things by it, and this can lead to disaster. We need to answer the question what precisely its meaning, sources and limits are. A second, more substantive reason for its neglect in economics follows from an argument proposed by Williamson (1993).


Switching Cost Institutional Environment Institutional Arrangement Subjective Probability Strategic Management Journal 
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  • Bart Nooteboom

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