Trust cannot be eliminated from ongoing 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

Category: Factual Claims

• DEFINE: Defines the key conclusion that trust is indispensable despite comprehensive contracting.
• XREF: This ‘trust cannot be disposed of entirely’ directly supports the reader’s thesis that the doctor’s wife’s sightedness becomes the sole source of order once the epidemic removes all normal trust in Saramago.

Related

• Bounded rationality and inevitable surprise make trust irreducible in locked-in economic relations (similarity 0.88)
• Rationality limits and inevitable surprise make trust irreducible in locked-in relations. (similarity 0.86)
• Trust governs dealings only where kinship and contract cannot constrain others (similarity 0.84)
• Trust requires that the risky relationship be avoidable (similarity 0.83)
• Trust requires both freedom to betray and constraint making the relationship worthwhile. (similarity 0.83)
• Trust operates where parties are both free and constrained (similarity 0.82)
• Trust’s interconnected structure makes it fragile across whole systems (similarity 0.82)
• Economists treat trust as background rather than transaction cost (similarity 0.82)
• Trust requires both security of expectation and willingness to suspend distrust (similarity 0.82)
• Comprehensive contracts remove the need for trust only when no uncertainty exists. (similarity 0.82)
• Trust requires the trusting party also hold a choice to withdraw (similarity 0.82)
• Genuine trust requires one’s own freedom to exit a relationship (similarity 0.82)
• Trust flourishes most where neither kinship nor contract obligations apply (similarity 0.82)
• Strategies to minimize reliance on trust have been conflated with neglecting to understand it. (similarity 0.81)
• Trust can be systematically dissolved while a society is preserved (similarity 0.81)