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AUTHOR:
Paul Joseph Zak
TITLE:
TRUST
SUGGESTED CITATION:
Paul Joseph Zak
(2006)
"TRUST",
The Gruter Institute Working Papers on Law, Economics, and Evolutionary Biology:
Vol. 4:
Article 2.
http://www.bepress.com/giwp/default/vol4/iss1/art2
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ABSTRACT:
Trust pervades every aspect of our daily lives, from business
transactions to dealings with loved-ones, yet why we trust others in
some instances but not others is little understood. At an aggregate
level, surveys of trustworthiness show enormous differences across
countries, from 3% in Brazil to 65% in Norway. This article reports
on new research that has characterized the legal, social, economic,
and environmental factors that cause trust to be high or low. It also
reports on laboratory experiments that demonstrate that trust has a
neurophysiological basis. This research shows that low trust is a
fundamental cause of poverty, but also that trust is directly
influenced by government policies and particular human interactions.
The article concludes with implications of this research for a variety
of business situations.
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