Rationality limits and inevitable surprise make trust irreducible in locked-in 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

Category: Causal Relationships

• XREF: Anchor proposition for the reader’s Luhmann/Hardin synthesis: bounded rationality plus surprise forces reliance on trust rather than complete contracts.

Related

• Bounded rationality and inevitable surprise make trust irreducible in locked-in economic relations (similarity 0.96)
• Departures from unbounded rationality significantly help maintain trust. (similarity 0.86)
• Trust cannot be eliminated from ongoing economic relations. (similarity 0.86)
• Withholding trust feeds a self-reinforcing spiral of lost rational capacity. (similarity 0.82)
• Lock-in effects make trust essential to ongoing subcontracting relations (similarity 0.81)
• Comprehensive contracts remove the need for trust only when no uncertainty exists. (similarity 0.81)
• Building mutual trust requires confronting risk rather than avoiding it (similarity 0.81)
• Trust is an irreducible tradeoff between over- and under-constraining agents. (similarity 0.80)
• Trust is rational action taken despite uncontrolled exposure to loss (similarity 0.80)
• Trust structures may later givver way to simple confidence (similarity 0.80)
• Trust cannot be assumed to emerge naturally in human interaction (similarity 0.80)
• Strategies to minimize reliance on trust have been conflated with neglecting to understand it. (similarity 0.79)
• Genuine trust requires one’s own freedom to exit a relationship (similarity 0.79)
• Trust requires that the risky relationship be avoidable (similarity 0.79)
• Missing confidence saps diffuse sentiment while missing trust blocks decisive action. (similarity 0.79)