Building mutual trust requires confronting risk rather than avoiding it

Evidence

Whoever trusts has to keep control over his own preparedness to accept the risks involved. He must make it clear to himself, if only to reassure himself, that he is not trusting unconditionally but rather within limits and in proportion to specific, rational expectations. It is himself he must curb and control when he puts his trust in someone or something. — Niklas Luhmann, Trust and Power, 161 (#qualifies, via linked claim)

Secondly, the action and hence the risks are avoidable: one does not have to engage in trade with another firm (although this implies forgoing the potential benefits of trade). Being able to avoid the relation is fundamental. If you could not, you might say something like: ‘I have no choice but to trust this person, institution, etc.’ Clearly, there being no choice, we need not invoke trust to explain our behaviour. Of course, as Luhmann (this volume) points out, whether or not a relation is seen to be avoidable is often highly subjective, and presumably varies in accordance with the structure of institutions and political power. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2510 (#contradicts, via linked claim)

Categorization

  • XREF: connects to: Contracting, not trust, brings the future into the present; Overt risk calculation in contracts can undercut the trust it formalizes; Trust requires both freedom to defect and constraints that make cooperation attractive (+4 more)

Broader Connections