Market confidence is inductive expectation reviewable against dealer behavior

Evidence

My “trust” in the market may be like my trust in simple facts of nature—it is merely confidence from induction. I will correct specific details of my confidence when any dealer out there violates it, but I will otherwise treat each dealer as benign, at least in the sense of not malign. If I share Adam Smith’s view that most dealers are likely to share my interests (because they must serve my interests to serve their own), I may even think of them as actively benign. I can do this because dealers are typically in competition with other dealers and they must live by their reputations and by the development of ongoing customer bases. — Russell Hardin, Trust and Trustworthiness, 833

Categorization

Category: Definitional Content

• DEFINE: Distinguishes induction-based confidence from genuine trust — a key definitional boundary in Hardin’s framework.

Broader Connections

• Whether disappointment depends on one’s own behavior distinguishes trust from mere confidence #corroborates (0.80) — Diego Gambetta, Trust - Making and Breaking Cooperative…, 1382