Tuesday, March 11, 2008

Trust and Trade

"...trade is the best thing we can do to break down the natural animosities between groups. For trade to work, two individuals have to have a certain amount of trust. We know from game theory that once trust breaks down, subjects begin to defect rather than cooperate. What does it take for them to cooperate? Trust. What does trust take? Trust takes a number of exchanges in which there are no defections."

Michael Shermer, in reason, April, 2008

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