Trust and relational embeddedness: exploring a paradox of trust pattern development in key supplier relationships

This paper explores the role of trust as an enabler and constraint between buyers and suppliers engaged in long-term relationships. According to the relational view, cooperative strategies require trust-based mutual commitments to co-create value. However, complete pictures of the positive and negative outcomes from trust development have yet to be fully developed. In particular, trust as an originator of path dependent constraints resulting from over embeddedness is yet to be integrated into the relational view. We use a case-based methodology to explore whether trust is an optimizing phenomenon in key supplier relationships. Two cases where trust development processes demonstrate a paradox of trust-building behaviors cultivate different outcomes constraining value co-creation.

Coalition Formation through Motivation and Trust

Cooperation is the fundamental underpinning of multi-agent systems, allowing agents to interact to achieve their goals. Where agents are self-interested, or potentially unreliable, there must be appropriate mechanisms to cope with the uncertainty that arises. In particular, agents must manage the risk associated with interacting with others who have different objectives, or who may fail to fulfil their commitments. Previous work has utilised the notions of motivation and trust in engendering successful cooperation between self-interested agents. Motivations provide a means for representing and reasoning about agents' overall objectives, and trust offers a mechanism for modelling and reasoning about reliability, honesty, veracity and so forth. This paper extends that work to address some of its limitations. In particular, we introduce the concept of a clan: a group of agents who trust each other and have similar objectives. Clan members treat each other favourably when making private decisions about cooperation, in order to gain mutual benefit. We describe mechanisms for agents to form, maintain, and dissolve clans in accordance with their self-interested nature, along with giving details of how clan membership influences individual decision making. Finally, through some simulation experiments we illustrate the effectiveness of clan formation in addressing some of the inherent problems with cooperation among self-interested agents.

The End of the Transitional Period for Police and Criminal Justice Measures Adopted before the Lisbon Treaty: Who monitors trust in the European Criminal Justice area? CEPS Liberty and Security in Europe No. 74, December 2014

This study examines the legal and political implications of the forthcoming end of the transitional period for the measures in the fields of police and judicial cooperation in criminal matters, as set out in Protocol 36 to the EU Treaties. This Protocol limits some of the most far-reaching innovations introduced by the Treaty of Lisbon over EU cooperation on Justice and Home Affairs for a period of five years after the entry into force of the Treaty of Lisbon (until 1 December 2014), and provides the UK with special ‘opt out/opt-in’ possibilities. The study focuses on the meaning of the transitional period for the wider European Criminal Justice area. The most far-reaching change emerging from the end of this transition will be the expansion of the European Commission and Luxembourg Court of Justice scrutiny powers over Member States’ implementation of EU criminal justice law. The possibility offered by Protocol 36 for the UK to opt out and opt back in to pre-Lisbon Treaty instruments poses serious challenges to a common EU area of justice by further institutionalising ‘over-flexible’ participation in criminal justice instruments. The study argues that in light of Article 82 TFEU the rights of the defence are now inextricably linked to the coherency and effective operation of the principle of mutual recognition of criminal decisions, and calls the European Parliament to request the UK to opt in EU Directives on suspects procedural rights as condition for the UK to ‘opt back in’ measures like the European Arrest Warrant.

Trust and Reputation in Internet Auctions

Exchange between anonymous actors in Internet auctions corresponds to a one-shot prisoner's dilemma-like situation. Therefore, in any given auction the risk is high that seller and buyer will cheat and, as a consequence, that the market will collapse. However, mutual cooperation can be attained by the simple and very efficient institution of a public rating system. By this system, sellers have incentives to invest in reputation in order to enhance future chances of business. Using data from about 200 auctions of mobile phones we empirically explore the effects of the reputation system. In general, the analysis of nonobtrusive data from auctions may help to gain a deeper understanding of basic social processes of exchange, reputation, trust, and cooperation, and of the impact of institutions on the efficiency of markets. In this study we report empirical estimates of effects of reputation on characteristics of transactions such as the probability of a successful deal, the mode of payment, and the selling price (highest bid). In particular, we try to answer the question whether sellers receive a "premium" for reputation. Our results show that buyers are willing to pay higher prices for reputation in order to diminish the risk of exploitation. On the other hand, sellers protect themselves from cheating buyers by the choice of an appropriate payment mode. Therefore, despite the risk of mutual opportunistic behavior, simple institutional settings lead to cooperation, relatively rare events of fraud, and efficient markets.

Annual report of the Commissioner of Banking of state and mutual savings banks of Wisconsin.

Description based on: 9th (1903).

Evaluation of flow regimes in a semi-cylindrical spouted bed through statistical, mutual information, spectral and Hurst`s analysis

Hydrodynamic studies were conducted in a semi-cylindrical spouted bed column of diameter 150 mm, height 1000 mm, conical base included angle of 60 degrees and inlet orifice diameter 25 mm. Pressure transducers at several axial positions were used to obtain pressure fluctuation time series with 1.2 and 2.4 mm glass beads at U/U-ms from 0.3 to 1.6, and static bed depths from 150 to 600 mm. The conditions covered several flow regimes (fixed bed, incipient spouting, stable spouting, pulsating spouting, slugging, bubble spouting and fluidization). Images of the system dynamics were also acquired through the transparent walls with a digital camera. The data were analyzed via statistical, mutual information theory, spectral and Hurst`s Rescaled Range methods to assess the potential of these methods to characterize the spouting quality. The results indicate that these methods have potential for monitoring spouted bed operation.

Subgroup relations: A comparison of mutual intergroup differentiation and common ingroup identity models of prejudice reduction

Two studies examined relations between groups (humanities and math-science students) that implicitly or explicitly share a common superordinate category (university student). In Experiment 1, 178 participants performed a noninteractive decision-making task during which category salience was manipulated in a 2 (superordinate category salience) x 2 (subordinate category salience) between-groups design. Consistent with the mutual intergroup differentiation model, participants for whom both categories were salient exhibited the lowest levels of bias, whereas bias was strongest when the superordinate category alone was made salient. This pattern of results was replicated in Experiment 2 (N = 135). In addition, Experiment 2 demonstrated that members of subgroups that are nested within a superordinate category are more sensitive to how the superordinate category is represented than are members of subgroups that extend beyond the boundaries of the superordinate category.

Communicating trustworthiness and building trust in interorganizational virtual organizations

We propose a theory of trust in interorganizational virtual organizations that focuses on how trustworthiness can be communicated and trust built in this environment. The theory highlights three issues that must be dealt with if the potential obstacles to the development of trust in the virtual context are to be overcome. These are communication of trustworthiness facilitated by reliable Information and Communication Technology (ICT), establishment of a common business understanding, and strong business ethics. We propose four specific propositions relating to these issues, and suggest topics to be explored in future research. (C) 2001 Elsevier Science Inc. All rights reserved.

Unagi-sentences in Japanese and mutual knowledge

This paper examines the so-called ’Unagi-sentence‘ in Japanese. So far, it has been taken for granted that the Unagi-sentence is incomplete syntactically and/or semantically. Because its structure apparently neither provides a fully-fledged semantic meaning, nor furnishes a plausible syntactic pattern (such as ‘subject-predicate‘), a number of previous works have considered the Unagi-sentence to be elliptic, and consequently reconstructed it as a complete sentence or established intermediate structures to account for its grammatical form. Other researchers have not used elliptic solutions, but sought to discover logical connections between the parts of the Unagi-sentence themselves. As a result, fixing their entire attention on the internal structure of the Unagi-sentence, these researchers inevitably needed to establish hypothetical constructs in order to explain the structure of the Unagi-sentence. The present author believes that the Unagi-sentence is neither incomplete nor a result of some hypothetical processes. The Unagi-sentence stands on its own as a complete utterance. It is basically an NP utterance which can be expanded to the form NP1 wa + NP2 da and its variations. The occurrence of the Unagi-sentence depends heavily on a presupposed context and its pragmatic features, without which the Unagi-sentence cannot exist. It is these features that the present article seeks to elucidate.