Bounded rationality and inevitable surprise make trust irreducible in locked-in economic relations

Evidence

In conclusion, then, once firms are locked into a relation, trust is essential. The need for trust can be circumscribed through the efforts of the parties to engage in comprehensive contracting. But the limits to our rationality in a world where surprise is inevitable ensure that such efforts will be imperfect at best. Trust cannot be disposed of entirely. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2562

Categorization

• XREF: Aligns with Hardin’s claim that trust becomes essential precisely where observable constraint on opportunism breaks down.