Trust and partner selection in social networks: An experimentally grounded model

Authored by Riccardo Boero, Flaminio Squazzoni, Giangiacomo Bravo

Date Published: 2012-10

DOI: 10.1016/j.socnet.2012.03.001

Sponsors: Italian Ministry for University and Scientific Research

Platforms: Java JVM JAS (Java Agent-based Simulation Platform)

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

This article investigates the importance of the endogenous selection of partners for trust and cooperation in market exchange situations, where there is information asymmetry between investors and trustees. We created an experimental-data driven agent-based model where the endogenous link between interaction outcome and social structure formation was examined starting from heterogeneous agent behaviour. By testing various social structure configurations, we showed that dynamic networks lead to more cooperation when agents can create more links and reduce exploitation opportunities by free riders. Furthermore, we found that the endogenous network formation was more important for cooperation than the type of network. Our results cast serious doubt about the static view of network structures on cooperation and can provide new insights into market efficiency. (C) 2012 Elsevier B.V. All rights reserved.

Tags

Agent-based model Social networks Cooperation Trust Laboratory Experiment Partner selection