Social Networks and Trust

Contents
xi
List of Figures
xiii
List of Tables
xv
Preface
1. INTRODUCTION: EMBEDDED TRUST 1
1.1 Examples 1
1.2 Trust 5
1.2.1 Defining Trust 5
1.2.2 Trust in Isolated Encounters 9
1.2.3 Trust in Repeated Transactions 10
1.2.4 Trust in Social Networks 15
1.2.5 Arrangements to Reduce the Trust Problem 23
1.3 Research Questions 26
1.4 Overview 29
2. SOCIAL NETWORK ANALYSIS AND GAME THEORY 31
2.1 Social Network Analysis 32
2.2 Game Theory 42
3. A GAME-THEORETIC MODEL FOR CONTROL EFFECTS IN
SOCIAL NETWORKS 53
3.1 Introduction 53
3.2 Construction of the Model 55
62
3.3 Solution of the Model
3.4 Properties of the Solution 66
71
3.5 Approximation Using Linearization
74
3.6 Approximation Using Simulation
3.6.1 Methods 74
3.6.2 Analyses for Simulated Data 78
3.7 Substantive Implications 86
3.8 Discussion 89
4. A STOCHASTIC MODEL FOR INFORMATION DIFFUSION IN
SOCIAL NETWORKS 93
4.1 Introduction 93
4.2 The Model 96
4.2.1 Assumptions and Main Theorem 96
4.2.2 Diffusion Times and Centrality Measures 101
4.3 Analytic Results for Diffusion Times 104
4.4 The Simulation 109
4.4.1 Methods 109
4.4.2 Analyses for Simulated Data 112
4.5 Substantive Implications Related to Trust 119
4.6 Discussion 121
5. CONTRACTING IN INFORMATION TECHNOLOGY
TRANSACTIONS: A SURVEY 125
5.1 Introduction 125
5.2 Data and Hypotheses 130
5.2.1 Description of the Data 130
5.2.2 Operationalizations 132
5.2.3 Summary Statistics of the Variables 142
5.2.4 Hypotheses 143
5.3 Analyses 146
5.3.1 Methods 146
5.3.2 Tests of the Hypotheses 147
5.3.3 Interpretation of the Network Effects 152
5.4 Conclusions and Discussion 158
6. BUYING A USED CAR: AN EXPERIMENT 163
6.1 Introduction 163
6.2 The Vignette Experiment 166
6.2.1 The Setting 166
6.2.2 Independent Variables 167
6.2.3 Method of Paired Comparison 170
6.2.4 Vignette Selection 173
6.2.5 Subject Characteristics 177
6.3 Data Collection 178
6.4 Analyses 179
6.4.1 Methods 179
6.4.2 Tests of the Hypotheses 181
6.4.3 Presentation Effects 185
6.4.4 Subject Effects 186
6.5 Conclusions and Discussion 187
7. SUMMARY AND NEW PERSPECTIVES 191
7.1 Results 191
7.2 Discussion 198
7.3 Suggestions for Further Research 204
Appendices 213
A– Mathematical Details 213
B– Network Construction Methods for Valued Networks 225
C– Information on the MAT95 Questionnaire 229
D– The Vignette Experiment 235
References 245
About the Author 261
Author Index 263
Topic Index 267


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