dunnettreader + trust   29

Deepak Malhotra & J. Keith Murnighan - The Effects of Contracts on Interpersonal Trust (2002)| Administrative Science Quarterly at JSTOR
Administrative Science Quarterly
Vol. 47, No. 3 (Sep., 2002), pp. 534-559
DOI: 10.2307/3094850
Stable URL: http://www.jstor.org/stable/3094850
Topics: Contracts, Cooperation, Trust, Interpersonal interaction, Psychology, Social interaction, Social psychology, Situational attribution, Motivation, Organizational behavior
social_psychology  contracts  article  altruism  moral_psychology  punishment-altruistic  trust  organizations  downloaded  cooperation  firms-organization  motivation 
april 2017 by dunnettreader
Olivier Blanchard & Michael Kremer - Disorganization - Quarterly Journal of Economics (1997)
Abstract
Under central planning, many firms relied on a single supplier for critical inputs. Transition has led to decentralized bargaining between suppliers and buyers. Under incomplete contracts or asymmetric information, bargaining may inefficiently break down, and if chains of production link many specialized producers, output will decline sharply. Mechanisms that mitigate these problems in the West, such as reputation, can only play a limited role in transition. The empirical evidence suggests that output has fallen farthest for the goods with the most complex production process, and that disorganization has been more important in the former Soviet Union than in Central Europe. - downloaded via iPhone to DBOX
trust  Russia  information-asymmetric  20thC  privatization  industrialization  reputation  Eastern_Europe  risk_management  article  Central_Asia  economic_history  information-markets  transition_economies  supply_chains  manufacturing  downloaded  post-Cold_War 
august 2016 by dunnettreader
D. Georgarakos
Trust, Sociability, and Stock Market Participation
Dimitris Georgarakos1 and
Giacomo Pasini2
1Goethe University Frankfurt and Center for Financial Studies
2Venice University
Review of Finance (2011) 15 (4): 693-725. doi: 10.1093/rof/rfr028 -- This article investigates the importance of both trust and sociability for stock market participation and for differences in stockholding across Europe. We estimate significant effects for the two, and find that sociability can partly balance the discouragement effect on stockholding induced by low regional prevailing trust. We test for exogeneity of trust and sociability indicators using variation in history of political institutions and in frequency of contacts with grandchildren, respectively. Moreover, the effect of trust is stronger in countries with limited participation and low average trust, offering an explanation for the remarkably low stockholding rates of the wealthy living therein. - downloaded via iPhone to DBOX
trust  sociability  investors  financial_system  article  capital_markets  investment  behavioral_economics  downloaded 
july 2016 by dunnettreader
Darrell Duffie and Jeremy C. Stein - Reforming LIBOR and Other Financial Market Benchmarks (2015) | AEAweb: Journal of Economic Perspectives, 29(2): 191-212.
LIBOR is the London Interbank Offered Rate: a measure of the interest rate at which large banks can borrow from one another on an unsecured basis. LIBOR is often used as a benchmark rate—meaning that the interest rates that consumers and businesses pay on trillions of dollars in loans adjust up and down contractually based on movements in LIBOR. Investors also rely on the difference between LIBOR and various risk-free interest rates as a gauge of stress in the banking system. Benchmarks such as LIBOR therefore play a central role in modern financial markets. Thus, news reports in 2008 revealing widespread manipulation of LIBOR threatened the integrity of this benchmark and lowered trust in financial markets. We begin with a discussion of the economic role of benchmarks in reducing market frictions. We explain how manipulation occurs in practice, and illustrate how benchmark definitions and fixing methods can mitigate manipulation. We then turn to an overall policy approach for reducing the susceptibility of LIBOR to manipulation before focusing on the practical problem of how to make an orderly transition to alternative reference rates without raising undue legal risks. -- didn't download
article  financial_system  financial_regulation  money_market  capital_markets  markets-structure  LIBOR  fraud  business-norms  business_ethics  trust  market_manipulation  accountability 
september 2015 by dunnettreader
Accounts and holding to account | Enlightened Economist - August 2015
I *loved* Jacob Soll’s The Reckoning: Financial Accountability and the Making and Breaking of Nations. It gives a long historical perspective on accountancy – no, wait – and particularly its importance in literally holding leaders and politicians to account. The book’s message is that there is a constant tension between the increasing sophistication of methods of accounting to hold to account, literally, kings or powerful companies or political leaders and the scope that sophistication creates for new ways of defrauding the people or the shareholders. So the methods of accountancy need to be embedded in a culture of honest dealing.
review  economic_history  institution-building  accountability  institutional_capacity  public_finance  self-regulation  accounting  government_officials  government_finance  books  trust  financial_system  from instapaper
august 2015 by dunnettreader
Andrew S. Gold, Paul B. Miller, eds. -- Introduction: Philosophical Foundations of Fiduciary Law (Oxford UP 2014) :: SSRN
Andrew S. Gold, DePaul University, College of Law and Paul B. Miller, McGill University Faculty of Law -- This Introduction outlines core questions of fiduciary law theory and provides thematic discussion of the contributions to the volume. The volume includes chapters by Richard Brooks, Hanoch Dagan, Evan Criddle, Deborah DeMott, Avihay Dorfman, Justice James Edelman, Evan Fox-Decent, Tamar Frankel, Joshua Getzler, Andrew Gold, Michele Graziadei, Sharon Hannes, Genevieve Helleringer, Ethan Leib, Daniel Markovits, Paul Miller, Irit Samet, Robert Sitkoff, Henry Smith, and Lionel Smith. -- PDF File: 17 -- Keywords: Philosophy of Law, Legal Theory, Philosophy of Private Law, Private Law Theory, Fiduciary Law, Fiduciary Relationships, Fiduciary Duties, Fiduciary Remedies, Duty of Loyalty, Duty of Care, Duty of Candour -- downloaded pdf to Note
chapter  books  SSRN  philosophy_of_law  jurisprudence  legal_theory  legal_reasoning  fiduciaries  principal-agent  agents  duties-legal  rights-legal  trust  trusts  duty_of_care  duty_of_loyalty  conflict_of_interest  legal_remedies  law-and-economics  law-and-finance  Roman_law  civil_law  common_law  property  inheritance  family_law  downloaded 
july 2015 by dunnettreader
Robert H. Sitkoff - An Economic Theory of Fiduciary Law :: SSRN - Philosophical Foundations of Fiduciary Law, Andrew Gold & Paul Miller eds. (Oxford UP, 2014
Harvard Law -- In consequence of this common economic structure [agency problem], there is a common doctrinal structure that cuts across the application of fiduciary principles in different contexts. However, (..) the particulars of fiduciary obligation vary in accordance with the particulars of the agency problem in the fiduciary relationship at issue. This explains (1) the purported elusiveness of fiduciary doctrine and (2) why courts apply fiduciary law both categorically, such as to trustees and (legal) agents, as well as ad hoc to relationships involving a position of trust and confidence that gives rise to an agency problem. (...) a functional distinction between primary and subsidiary fiduciary rules. In all fiduciary relationships we find general duties of loyalty and care, typically phrased as standards, (..) we also find specific subsidiary fiduciary duties, often phrased as rules, that elaborate on the application of loyalty and care to commonly recurring circumstances in the particular form of fiduciary relationship. (..) the puzzle of why fiduciary law includes mandatory rules that cannot be waived in a relationship deemed fiduciary. Committed economic contractarians, such as Easterbrook and Fischel, have had difficulty in explaining why the parties to a fiduciary relationship do not have complete freedom of contract. The answer is that the mandatory core of fiduciary law serves a cautionary and protective function within the fiduciary relationship as well as an external categorization function that clarifies rights for third parties. -- PDF File: 14 -- Keywords: fiduciary, agency, trust, loyalty, care, prudence, agency costs, duty
chapter  books  SSRN  law-and-economics  behavioral_economics  philosophy_of_law  jurisprudence  fiduciaries  agents  principal-agent  freedom_of_contract  trust  trusts  duty_of_care  duty_of_loyalty  conflict_of_interest  legal_reasoning  rights-legal  duties-legal  common_law 
july 2015 by dunnettreader
Geoffrey Jones - Entrepreneurs, Firms and Global Wealth Since 1850 - March 2013 | SSRN
Modern economic growth diffused from its origins in the North Sea region to elsewhere in western and northern Europe, across the Atlantic, and later to Japan, but struggled to get traction elsewhere. The societal and cultural embeddedness of the new technologies posed significant entrepreneurial challenges. The best equipped to overcome these challenges were often entrepreneurs based in minorities who held significant advantages in capital-raising and trust levels. By the interwar years productive modern business enterprise was emerging across the non-Western world. Often local and Western managerial practices were combined to produce hybrid forms of business enterprise. After 1945 many governmental policies designed to facilitate catch-up ended up crippling these emergent business enterprises without putting effective alternatives in place. The second global economy has provided more opportunities for catch up from the Rest, and has seen the rapid growth of globally competitive businesses in Asia, Latin America and Africa. This is explained not only by institutional reforms, but by new ways for business in the Rest to access knowledge and capital, including returning diaspora, business schools and management consultancies. Smarter state capitalism was also a greater source of international competitive advantage than the state intervention often seen in the past. -- downloaded pdf to Note
economic_history  development  industrialization  institutional_economics  19thC  20thC  21stC  post-WWII  competition-interstate  globalization  industrial_policy  emtrepreneurs  diaspora  SMEs  technology_transfer  trust  access_to_finance  modernization_theory  business_history  firms-organization  downloaded  SSRN  Industrial_Revolution 
april 2015 by dunnettreader
Gennaioli Shleifer and Vishny - Money Doctors (2015) | Andrei Shleifer
2015. “Money Doctors.” Journal of Finance 70 (1): 91-114.
Abstract
We present a new model of investors delegating portfolio management to professionals based on trust. Trust in the manager reduces an investor’s perception of the riskiness of a given investment, and allows managers to charge fees. Money managers compete for investor funds by setting fees, but because of trust, fees do not fall to costs. In equilibrium, fees are higher for assets with higher expected return, managers on average under perform the market net of fees, but investors nevertheless prefer to hire managers to investing on their own. When investors hold biased expectations, trust causes managers to pander to investor beliefs. -- downloaded via iPhone to DBOX
investors  risk-mitigation  risk_premiums  risk  liquidity  long-term  article  benchmarks  consumer_demand  institutional_investors  asset_prices  trust  capital_markets  financial_instiutions  risk_management  flight-to-quality  behavioral_economics  investment  management_fees  financial_innovation  downloaded  risk_assessment  asset_management 
march 2015 by dunnettreader
Paul A. Lewis and Emily Chamlee-Wright - Social Embeddedness, Social Capital and the Market Process: An Introduction to the Special Issue on "Austrian Economics, Economic Sociology and Social Capital" (2008:: SSRN
Paul A. Lewis, King's College London - Department of Political Economy -- Emily Chamlee-Wright, Beloit College - Department of Economics and Management -- Two of the most influential concepts in social science over the past two decades have been 'social embeddedness' and 'social capital'. This essay introduces a special issue of the Review of Austrian Economics in which those concepts are examined from the perspective provided by Austrian economics. In particular, the contributors consider the compatibility of notions of 'embeddedness' and 'social capital' with the Austrian theory of the market process and explore whether reformulating those concepts in the light of Austrian ideas can contribute fresh insights. -- Number of Pages in PDF File: 26 -- Keywords: Austrian economics, economic sociology, trust, social capital -- downloaded pdf to Note
article  SSRN  philosophy_of_social_science  economic_sociology  social_theory  economic_theory  embeddedness  social_capital  trust  Austrian_economics  downloaded  EF-add 
february 2015 by dunnettreader
Special Issue in Memory of Charles Tilly (1929–2008): Cities, States, Trust, and Rule - Contents | JSTOR: Theory and Society, Vol. 39, No. 3/4, May 2010
1 - Cities, states, trust, and rule: new departures from the work of Charles Tilly - Michael Hanagan and Chris Tilly [d-load] *-* 2 - Cities, states, and trust networks: Chapter 1 of 'Cities and States in World History' - Charles Tilly [d-load] *-* 3 - Unanticipated consequences of "humanitarian intervention": The British campaign to abolish the slave trade, 1807-1900 - Marcel van der Linden [d-load] *-* 4 - Is there a moral economy of state formation? Religious minorities and repertoires of regime integration in the Middle East and Western Europe, 600-1614 - Ariel Salzmann [d-load] *-* 5 - Inclusiveness and exclusion: trust networks at the origins of European cities - Wim Blockmans [d-load] *-* 6 - Colonial legacy of ethno-racial inequality in Japan - Hwaji Shin. *-* 7 - Legacies of empire? - Miguel Angel Centeno and Elaine Enriquez. *-* 8 - Cities and states in geohistory - Edward W. Soja [d-load] *-* 9 - From city club to nation state: business networks in American political development - Elisabeth S. Clemens [d-load] *-* 10 - Irregular armed forces, shifting patterns of commitment, and fragmented sovereignty in the developing world - Diane E. Davis *-* 11 - Institutions and the adoption of rights: political and property rights in Colombia - Carmenza Gallo *-* 12 - Taking Tilly south: durable inequalities, democratic contestation, and citizenship in the Southern Metropolis - Patrick Heller and Peter Evans *-* 13 - Industrial welfare and the state: nation and city reconsidered - Smita Srinivas *-* 14 - The forms of power and the forms of cities: building on Charles Tilly - Peter Marcuse [d-load] *-* 15 - Was government the solution or the problem? The role of the state in the history of American social policy
journal  article  jstor  social_theory  political_sociology  contention  social_movements  change-social  historical_sociology  nation-state  cities  city_states  urban_politics  urban_elites  urbanization  urban_development  economic_sociology  institutions  institutional_change  property_rights  civil_liberties  civil_society  political_participation  political_culture  inequality  class_conflict  development  colonialism  abolition  medieval_history  state-building  religious_culture  politics-and-religion  MENA  Europe-Early_Modern  Reformation  networks-business  US_history  US_politics  US_economy  welfare_state  power-asymmetric  power-symbolic  elites  elite_culture  imperialism  empires  trust  networks-social  networks-religious  networks  14thC  15thC  16thC  17thC  18thC  19thC  20thC  geohistory  moral_economy  military_history  militia  guerrillas  mercenaires  sovereignty  institution-building 
october 2014 by dunnettreader
Derek Hirst, review - Victoria Kahn. Wayward Contracts: The Crisis of Political Obligation in England, 1640–1674 (2004) | JSTOR: The American Historical Review, Vol. 111, No. 4 (October 2006), p. 1247
Derek Hirst, Washington University in St. Louis -- Reviewed work(s): Victoria Kahn. Wayward Contracts: The Crisis of Political Obligation in England, 1640–1674. Princeton: Princeton University Press. 2004. Pp. xii, 370. $49.50. -- mixed review. -- he thinks she's on to a major way of looking how various metaphors were deployed and evolved in 17, with her readings of Hobbes and Milton 1st rate. She gets some facts and cites wrong when she strays out of her lane (cavalier not in the 17thC sense). But more damning is her lack of sufficient familiarity with Elizabethan and French discourses of romance, passions and bodies politic. Short -- didn't download
books  bookshelf  reviews  jstor  intellectual_history  political_philosophy  moral_philosophy  literary_history  17thC  Hobbes  Milton  British_history  British_politics  English_lit  English_Civil_War  Interregnum  Restoration  English_constitution  republicanism  social_contract  emotions  passions  human_nature  moral_psychology  obligation  reciprocity  trust  interest-discourse 
october 2014 by dunnettreader
Frédérique Six, Bart Nooteboom and Adriaan Hoogendoorn - Actions that Build Interpersonal Trust: A Relational Signalling Perspective | JSTOR: Review of Social Economy, Vol. 68, No. 3 (SEPTEMBER 2010), pp. 285-315
A priority in trust research is to deepen our understanding of trust processes: how does trust develop and break down? This requires further understanding of what actions have what effects on trust in interpersonal interactions. The literature offers a range of actions that have effects on trust, but gives little explanation of why they do so, and how the actions "hang together" in their effects on trust. The question is what different classes of trust building actions there may be. Using a "relational signalling" perspective, we propose hypotheses for classes of action that trigger the attribution of mental frames (by the trustor to the trustee), and trigger the adoption of those frames by the trustor. A survey-based empirical test of trust building actions among 449 managers in 14 European countries confirms the hypotheses. -- didn't download
article  jstor  economic_culture  trust  economic_sociology 
september 2014 by dunnettreader
Jeremy Waldron - A Religious View of the Foundations of International Law (2011) :: SSRN - Charles E. Test Lectures in the James Madison Program at Princeton University
NYU School of Law, Public Law Research Paper No. 11-29 -- Lecture 1 begins from a specifically Christian point of view, though it also addresses the difficulties of sustaining a viewpoint of this kind in a multi-faith and indeed increasingly secular world. Lecture 2 considers nationhood, sovereignty, and the basis for the division of the world into separate political communities. A religious approach to international order will endorse the position of most modern international jurists that sovereign independence is not to be made into an idol or a fetish, and that the tasks of order and peace in the world are not to be conceived as optional for sovereigns. But sovereigns also have their own mission, ordering particular communities of men and women. Lecture 3 considers the rival claims of natural law and positivism regarding sources of international law. The most telling part of natural law jurisprudence from Aquinas to Finnis has always been its insistence on the specific human need for positive law. This holds true in the international realm as much as in any realm of human order - perhaps more so, because law has to do its work unsupported by the overwhelming power of a particular state. Lecture 3 addresses, from a religious point of view, the sources of law in the international realm: treaty, convention, custom, precedent, and jurisprudence. It will focus particularly on the sanctification of treaties. -- No of Pages : 73 -- Keywords: customary international law, international law, ius cogens, nationalism, natural law, positivism, public reason, religion, self-determination, sovereignty, treaties -- downloaded pdf to Note
paper  SSRN  philosophy_of_law  international_law  natural_law  positivism-legal  IR  IR_theory  diplomacy  international_organizations  legal_system  international_system  sovereignty  nation-state  nationalism  public_sphere  liberalism-public_reason  deliberation-public  decision_theory  customary_law  self-determination  national_interest  national_security  responsibility_to_protect  treaties  universalism  precedent  conflict_of_laws  dispute_resolution  human_rights  community  trust  alliances  politics-and-religion  jurisprudence  jurisdiction  downloaded  EF-add 
july 2014 by dunnettreader
Jeremy Waldron - The Principle of Proximity (2011) :: SSRN
NYU School of Law, Public Law Research Paper No. 11-08 -- How should we think about, how should we model the basis of political community. To the extent that it is a matter of choice, what should be the basis on which the people of the world divide themselves up into distinct political communities. This paper seeks to cast doubt on the proposition that it is a good idea for people to form a political community exclusively with those who share with them some affinity or trust based on culture, language, religion, or ethnicity. I want to cast doubt on that proposition by articulating an alternative approach to the formation of political communities, which I shall call the principle of proximity. People should form political communities with those who are close to them in physical space, particularly those close to them whom they are otherwise like to fight or to be at odds with. This principle is rooted in the political philosophies of Hobbes and Kant. The suggestion is that we are likely to have our most frequent and most densely variegated conflicts with those with whom we are (in Kant’s words) “unavoidably side by side”, and the management of those conflicts requires not just law (which in principle can regulate even distant conflicts) but law organized densely and with great complexity under the auspices of a state. The paper outlines and discusses the proximity principle, and the conception of law and state that it involves, and defends it against the criticism that it underestimates the importance of pre-existing trust in the formation of political communities. -- Number of Pages in PDF File: 27 -- Keywords: community, conflict, ethnicity, Hobbes, identity, Kant, law, nationalism, proximity, state, state-building
paper  SSRN  political_philosophy  moral_philosophy  philosophy_of_law  social_theory  community  community-virtual  conflict  political_culture  state-building  rule_of_law  trust  ethnic_ID  national_ID  nation-state  nationalism  Kant  Kant-politics  Kant-ethics  Hobbes  sociability  EF-add 
july 2014 by dunnettreader
Jeremy Waldron - Accountability: Fundamental to Democracy (2014, updated March 2015) :: SSRN
NYU School of Law, Public Law Research Paper No. 14-13 -- This paper defends a new and aggressive version of the agency model of accountability. It argues that officials and representatives in a democracy have an obligation to make available to citizens full information about what they have been doing. It is not permissible for them to sit back and see if the citizens can find out for themselves what they have been doing, any more than such a posture would be admissible in a commercial agent such as a realtor or an accountant. The paper also does several other things: (1) it develops a contrast between agent-accountability and forensic-accountability; (2) it distinguishes between political uses of "agency" and political uses of "trust" in political theory; (3) it develops a layered account of the principals in the democratic relation of agent-accountability, rejecting the reidentification of "the people"; (4) it develops an account of the relation between accountability and elections, emphasizing that elections play an important role in the fair settlement among principals as to how they should deal with their agents; (5) it shows that Burkeian representation is not incompatible with agent-accountability; and (6) it uses the notion of agent-accountability to illuminate the distinction between non-democratic and democratic republics. -- Number of Pages in PDF File: 32 -- Keywords: accountability, agency, Burke, democracy, elections, representation, republic, transparency, trust
paper  SSRN  political_philosophy  philosophy_of_law  legal_system  constitutionalism  democracy  accountability  transparency  agents  representative_institutions  common_good  national_interest  elections  fiduciaries  trust  trusts  government-forms  governing_class  government_officials  office  Burke  downloaded  EF-add 
july 2014 by dunnettreader
Ben Ho - The economics of apologies | vox 13 May 2014
Apologies are often hard – that’s the point. An apology is due when trust is broken, and to restore trust the apology must be hard. This column discusses a model of apologies as costly signals with some recent experimental evidence.
behavioral_economics  trust  you  relations-social  game_theory 
may 2014 by dunnettreader
Chris D. Frith and Tania Singer - The Role of Social Cognition in Decision Making | JSTOR: Philosophical Transactions: Biological Sciences, Vol. 363, No. 1511 (Dec. 12, 2008), pp. 3875-3886
Successful decision making in a social setting depends on our ability to understand the intentions, emotions and beliefs of others. The mirror system allows us to understand other people's motor actions and action intentions. 'Empathy' allows us to understand and share emotions and sensations with others. 'Theory of mind' allows us to understand more abstract concepts such as beliefs or wishes in others. In all these cases, evidence has accumulated that we use the specific neural networks engaged in processing mental states in ourselves to understand the same mental states in others. However, the magnitude of the brain activity in these shared networks is modulated by contextual appraisal of the situation or the other person. An important feature of decision making in a social setting concerns the interaction of reason and emotion. We consider four domains where such interactions occur: our sense of fairness, altruistic punishment, trust and framing effects. In these cases, social motivations and emotions compete with each other, while higher-level control processes modulate the interactions of these low-level biases. -- didn't download -- large references list
article  jstor  social_theory  cognition-social  decision_theory  altruism  fairness  trust  framing_effects  emotions  neuroscience  mind-theory_of  empathy  bibliography  EF-add 
may 2014 by dunnettreader
A bygone age … The unraveling … Faith in institutions by Nicholas Lemann | The Washington Monthly
First, we had too much faith in the ability of people like us, smart and well-intentioned upper-middle-class (defined by family background, not by what the Monthly paid) Washington liberals, to determine what was and wasn’t a genuine social need. Our scorn for interest group liberalism led us to undervalue the process of people organizing themselves and pushing the political system to give them what they wanted from it. Second, we failed to anticipate the way that eliminating all those structures that struck us as outdated—the government bureaucracies, the seniority system in Congress, the old-line interest groups—would almost inevitably wind up working to the advantage of elites more than of the ordinary people on whose behalf we imagined ourselves to be advocating. The frictionless, disintermediated, networked world in which we live today is great for people with money and high-demand skills, not so great for everybody else. It’s a cruel irony of the Monthly’s history that our preferred label for ourselves, neoliberal, has come to denote political regimes maximally friendly to the financial markets. I’ve come to see the merits of the liberal structures I scorned in my younger days.
US_history  20thC  intellectual_history  US_politics  liberalism  neoliberalism  democracy  governing_class  Congress  elections  trust  right-wing  interest_groups  bureaucracy  campaign_finance  elites  plutocracy 
april 2014 by dunnettreader
AARON GRAHAM, review essay -- MERCANTILE NETWORKS IN THE EARLY MODERN WORLD | JSTOR: The Historical Journal, Vol. 56, No. 1 (MARCH 2013), pp. 279-295
Reviewed work(s): ** (1) The capital and the colonies: London and the Atlantic economy, 1660—1700 by Nuala Zahedieh; ** (2) Defying empire: trading with the enemy in colonial New York by Thomas M. Truxes; ** (3) East India patronage and the British state: the Scottish elite and politics in the eighteenth century by George K. McGilvary; ** (4) The familiarity of strangers: the Sephardic diaspora, Livorno and cross-cultural trade in the early modern period by Francesca Trivellato; ** (5) Global trade and commercial networks: eighteenth-century diamond merchants by Tijl Vanneste; ** (6) From the Indian Ocean to the Mediterranean: the global trade networks of Armenian merchants from New Julfa by Sebouh David Aslanian; ** (7) Oceans of wine: Madeira and the emergence of American trade and taste by David Hancock -- lengthy 17 pages -- paywall Cambridge journals
books  reviews  paywall  economic_history  globalization  Europe-Early_Modern  colonialism  17thC  18thC  British_history  British_Empire  American_colonies  West_Indies  Atlantic  India  trading_companies  networks  trust  commerce  trade  East_India_Company  Portugal  Italy  Mediterranean  London  patronage  Scotland  Anglo-Scot  1707_Union  clientelism  EF-add 
january 2014 by dunnettreader
Joseph Henrich - A cultural species: How culture drove human evolution | Science Brief - Am Psychological Assoc Nov 2011
Recognizing the centrality of culture in human life leads to a novel evolutionary theory of status and status psychology. Evolutionary researchers have tended to assume that human status is merely an extension of primate dominance hierarchies. However, because humans are so heavily dependent on an information economy for survival, our species has evolved a second avenue to social status that operates alongside dominance and has its own suite of cognitive and affective processes. -- This work connects with the emotion literature where prior empirical studies had indicated the existence of two facets for the emotion pride—labeled authentic and hubristic pride. Our ongoing efforts suggest that hubristic pride is associated with dominance-status and authentic pride with prestige-status. -- Much empirical work treats status as a uni-dimensional construct, and then unknowingly operationalizes it as either prestige or dominance, or some mix of the two. -- The cultural evolution of norms over tens or hundreds of thousands of years, and their shaping by cultural group selection, may have driven genetic evolution to create a suite of cognitive adaptations we call norm psychology. -- This suite facilitates, among other things, our identification and learning of social norms, our expectation of sanctions for norm violations, and our ability to internalize normative behavior as motivations. This approach also predicts that humans ought to be inclined to “over-imitate” for two different evolutionary reasons, one informational and the other normative. The informational view hypothesizes that people over-imitate because of an evolved reliance on cultural learning to adaptively acquire complex and cognitively-opaque skills, techniques and practices that have been honed, often in nuanced and subtle ways, over generations. However, because individuals should also “over-imitate” because human societies have long been full of arbitrary norms (behaviors) for which the “correct” performance is crucial to one’s reputation (e.g., rituals, etiquette), we expect future investigations to reveal two different kinds of over-imitation. -- The selection pressures created by reputational damage and punishment for norm-violation may also favour norm-internalization. Neuroeconomic studies suggest that social norms are in fact internalized as intrinsic motivations in people’s brains.
biocultural_evolution  social_psychology  norms  status  power  leaders  learning  children  innate_ideas  incentives  behavioral_economics  moral_psychology  emotions  morality-conventional  sociology_of_religion  trust  cooperation  Innovation  tools  bibliography  EF-add 
january 2014 by dunnettreader
J. S. Maloy: Two Concepts of Trust (2009)
JSTOR: The Journal of Politics, Vol. 71, No. 2 (Apr., 2009), pp. 492-505 -- downloaded pdf to Note -- Debates around political trust, notwithstanding ostensible disagreements, have converged on a conceptualization that is more psychological and economic than political. By contrast, classic debates in the history of political thought featured an agency-centered approach revolving around two concepts of trust, the discretionary and the accountable. Exploring the dynamic tension between discretion and accountability and restoring the latter to its historic significance for democratic theory would remedy some defects of the recent literature on trust. In particular, some rational-choice studies, though bearing important criticisms of alternative accounts of trust, have settled on vague and potentially selfdefeating prescriptions for psychologically distrusting and institutionally disempowering government.
article  jstor  political_philosophy  political_economy  political_culture  trust  institutions  fiduciary  authority  rational_choice  downloaded  EF-add 
august 2013 by dunnettreader
Finance and the Preservation of Wealth by Nicola Gennaioli, Andrei Shleifer, Robert W. Vishny :: SSRN June 2013
SSRN briefcase NBER $
Abstract:      We introduce the model of asset management developed in Gennaioli, Shleifer, and Vishny (2012) into a Solow-style neoclassical growth model with diminishing returns to capital. Savers rely on trusted intermediaries to manage their wealth (claims on capital stock), who can charge fees above costs to trusting investors. In this model, the size of the financial sector rises with aggregate wealth, and wealth grows relative to GDP. As a consequence, the ratio of financial income to GDP rises over time, even though fees for given financial services decline. Because the size of the financial sector fluctuates with changes in investor trust, the model can account for the sharp decline of finance in the Great Depression, as well as its slow recovery afterwards. Entry by financial intermediaries as wealth increased in recent years may have further deepened investor trust and encouraged growth of financial income.
Number of Pages in PDF File: 40

Gennaioli, Nicola, Shleifer, Andrei and Vishny, Robert W., Finance and the Preservation of Wealth (June 2013). NBER Working Paper No. w19117. Available at SSRN: http://ssrn.com/abstract=2280969
macroeconomics  economic_growth  capital  institutional_investors  financialization  economic_history  20thC  21stC  economic_models  behavioral_economics  trust  EF-add 
july 2013 by dunnettreader
Money Doctors by Nicola Gennaioli, Andrei Shleifer, Robert W. Vishny :: SSRN June 2012
SSRN briefcase

Abstract:      We present a new model of money management, in which investors delegate portfolio management to professionals based not only on performance, but also on trust. Trust in the manager reduces an investor’s perception of the riskiness of a given investment, and allows managers to charge higher fees to investors who trust them more. Money managers compete for investor funds by setting their fees, but because of trust the fees do not fall to costs. In the model, 1) managers consistently underperform the market net of fees but investors still prefer to delegate money management to taking risk on their own, 2) fees involve sharing of expected returns between managers and investors, with higher fees in riskier products, 3) managers pander to investors when investors exhibit biases in their beliefs, and do not correct misperceptions, and 4) despite long run benefits from better performance, the profits from pandering to trusting investors discourage managers from pursuing contrarian strategies relative to the case with no trust. We show how trust-mediated money management renders arbitrage less effective, and may help destabilize financial markets.

Number of Pages in PDF File: 41

Gennaioli, Nicola, Shleifer, Andrei and Vishny, Robert W., Money Doctors (June 11, 2012). Chicago Booth Research Paper No. 12-39; Fama-Miller Working Paper. Available at SSRN: http://ssrn.com/abstract=2133429 or http://dx.doi.org/10.2139/ssrn.2133429
capital_markets  institutional_investors  institutional_economics  behavioral_economics  financialization  financial_system  trust  EF-add 
july 2013 by dunnettreader
Taxes, norms & belief equilibria | Chris Dillow
One claim of neoliberalism is that individuals are entitled to their incomes, as these are the result of work and contribution to society rather than to, say, luck or accidents ofhistory. If people believe this, then they will have lower tax morale.
Neoliberalism is performative; it doesn't just describe the world, but creates it.
norms  trust  institutional_economics  political_economy  politics-and-money  neoliberalism  social_theory 
june 2013 by dunnettreader
Scott E.D. Skyrm » Seg Funds, MF Global, Sentinel, And Saving The Futures Industry
Excellent history of seg funds scandals in futures brokers, and difficulties in court process for tracking and obtaining misused customer assets. Not just a Great Recession issue. Skyrm recommends: The industry needs to add a third party agent into the Seg fund holding process, which would verify and value the securities in the account.
capital_markets  financial_regulation  trust  self-regulation  2013 
june 2013 by dunnettreader

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