Network-Based Trust Games: An Agent-Based Model

Authored by Tong Zhang, Bin-Tzong Chie, Shu-Heng Chen

Date Published: 2015

Sponsors: Chinese National Natural Science Foundation Ministry of Science and Technology Taiwan National Science Council

Platforms: NetLogo

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

By hybridizing two kinds of games frequently used in experimental economics, namely, trust games and network games, this paper develops a model of the network-based trust game. Through agent-based simulation of the model, we can demonstrate the positive effects of trust on growth. Even though the underlying technology still provides the fundamental channel for growth, there is an indirect effect on growth through network formation. It is in this network formation process that trust plays a role. The trust considered in this paper is a kind of myopic trust which, through the stochastic choice model, can affect agents' decisions regarding networking, portfolios, and kickbacks, which in turn affects network formation, wealth creation, and distribution.
Tags
Simulation Evolution Reciprocity Reputation Decision-Making Trustworthiness Altruism Partner selection Economic-growth Metaanalysis