The economics of trust
Kenneth S. Bigel
Touro College (The Lander College for Men division), United States of America
kbigel@touro.edu
Abstract
This is a philosophic discussion regarding the economic benefits of truth-telling and its associated variable, trust. Religion and certain ethical philosophies present a rules-based, deontological view of truth-telling. The economic argument, we shall discover, is utilitarian in nature and compelling. Recent literature in the social sciences falls short of defining an adequate theoretical basis, or philosophic framework, upon which this subject may be studied. A distinction between basic and professional trust is made. The implications for Business Management are profound. We begin the discussion with the nuances of “the truth.”
Keywords: trust; ethics; economic efficiency; profession