Why Trust Matters: An Economist's Guide to the Ties That Bind Us

335 Pages·2021·6.992 MB·English

by  Benjamin Ho

WHY TRUST
MATTERS

WHY TRUST
MATTERS
An Economist’s Guide to the
Ties That Bind Us
BENJAMIN HO
Columbia University Press New York
Columbia University Press
Publishers Since 1893
New York Chichester, West Sussex
cup.columbia.edu
Copyright © 2021 Benjamin Ho
All rights reserved
Library of Congress Cataloging-in-Publication Data
Names: Ho, Benjamin Tseng author.
Title: Why trust matters : an economist's guide to the ties that bind
us / Benjamin Ho.
Description: New York City : Columbia University Press, 2021. |
Includes index.
Identifiers: LCCN 2020051482 (print) | LCCN 2020051483 (ebook) |
ISBN 9780231189606 (hardback) | ISBN 9780231548427 (ebook)
Subjects: LCSH: Trust–Economic aspects. |
Economics–Psychological aspects. | Game theory.
Classification: LCC HB72 .H596 2021 (print) |
LCC HB72 (ebook) | DDC 330.01/9–dc23
LC record available at https://lccn.loc.gov/2020051482
LC ebook record available at https://lccn.loc.gov/2020051483
Columbia University Press books are printed on permanent and
durable acid-free paper.
Printed in the United States of America
Cover design: Milenda Nan Ok Lee
Cover image: kadirkaba © iStock
BRIEF CONTENTS
Acknowledgments vii
1 Economics of Trust 1
2 The History of Trust 37
3 Trust in the Modern Economy 97
4 Trusting Institutions with Expertise 172
5 Trusting One Another 232
6 Conclusion 273
Detailed Contents 277
Notes 281
Index 307

ACKNOWLEDGMENTS
T
HANK you to all the many readers, students, and former
students who gave comments and feedback of early
drafts along the way. Writing a book is daunting, and you
worry that nothing you write makes any sense. Comments and
suggestions provided helpful reassurance that at least some parts
of the book now make some sense to at least some people.
Thank you all of my former students, and in particular to Ivy
Teng, Stephanie Coons, Zoey Chopra, Eric Heydorn, and Sanaya
Shikari for their detailed comments.
Thank you to my research assistant, Diana Henry, whom
I hired because she never hesitated to challenge my ideas. She
helped greatly in thinking through the structure and themes of
the book. Thank you also to my line editor, Sara Streett, whose
careful and critical reading did much to clarify my prose and
my thinking. Thank you to Seth Stephens-Davidovitz for his
guidance. Thank you to my friend Reza Hasmath for our long
discussions about trust that helped inspire this book.
Thank you to my great and supportive editors at Columbia
University Press, Bridget Flannery-McCoy, Eric Schwartz, and
Christian Winting.
viii Acknowledgments
Thank you to my PhD advisor Edward Lazear, who passed
away shortly before this book came to print. While I was still a
student, he told me to always sign and dedicate every gift copy of
the book that he was sure I would one day write. I was excited to
dedicate the first copy to him. His influence is everywhere in this
book, particularly his unwavering faith in the ability of economics
to uncover universal truths. He will be greatly missed.
Thank you to all my professors, friends, and colleagues who
have shaped my intellectual journey, challenged my ideas and
forced to refine my thinking.
Thank you to my mom, Lan Ho, for making me the person
I am today, and my brother Andy Schlesinger, for always keeping
me honest.
Finally, thank you to my wife, Romina Wahab, who has
supported me every step of the way, and to my children for
their inspiration and for always reminding me about what is
most important.
WHY TRUST
MATTERS