Abstract
Among the various human factors impinging upon making a decision in an uncertain environment, risk and trust are surely crucial ones. Several models for trust have been proposed in the literature but few explicitly take risk into account. This paper analyses the relationship between the two concepts by first looking at how a decision is made to enter into a transaction based on the risk information. We then draw a model of the invested fraction of the capital function of a decision surface. We finally define a model of trust composed of a reliability trust as the probability of transaction success and a decision trust derived from the decision surface.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Bachmann, R.: Trust, Power and Control in Trans-Organizational Relations. Organization Studies 2, 341–369 (2001)
Birnbaum, M.H.: Decision and Choice: Paradoxes of Choice. In: Smelser, N.J., et al. (eds.) International Encyclopedia of the Social and Behavioral Sciences, pp. 3286–3291. Elsevier, Amsterdam (2001)
Borge, D.: The Book of Risk. John Wiley & Sons, Chichester (2001)
Cahill, V., et al.: Using Trust for Secure Collaboration in Uncertain Environment. IEEE Pervasive Computing 2(3), 52–61 (2003)
Dimitrakos, T.: A Service-Oriented Trust Management Framework. In: Falcone, R., Barber, S.K., Korba, L., Singh, M.P. (eds.) AAMAS 2002. LNCS (LNAI), vol. 2631, pp. 53–72. Springer, Heidelberg (2003)
Falcone, R., Castelfranchi, C.: Social Trust: A Cognitive Approach, pp. 55–99. Kluwer, Dordrecht (2001)
Grandison, T.: Trust Management for Internet Applications. PhD thesis, University of London (July 2003)
Grandison, T., Sloman, M.: A Survey of Trust in Internet Applications. IEEE Communications Surveys 3(4), 2–16 (Fourth Quarter 2000)
Luce, R.D.: Utility of Gains and Losses: Measurement-Theoretical and Experimental Approaches. Lawrence Erlbaum Associates, Inc., New Jersey (2000)
Manchala, D.W.: Trust Metrics, Models and Protocols for Electronic Commerce Transactions. In: Proc. of the 18th International Conference on Distributed Computing Systems, pp. 312–321. IEEE Computer Society, Los Alamitos (1998)
Mas-Colell, A., Whinston, M., Green, J.: Microeconomic Theory. Oxford University Press, Oxford (1995)
McKnight, D.H., Chervany, N.L.: The Meanings of Trust. Technical Report MISRC Working Paper Series 96-04, University of Minnesota, Management Information Systems Reseach Center (1996), http://www.misrc.umn.edu/wpaper/wp96-04.htm
Patrick, A.: Building Trustworthy Software Agents. IEEE Internet Computing 6(6), 46–53 (2002)
Povey, D.: Developing Electronic Trust Policies Using a Risk Management Model. In: Baumgart, R. (ed.) CQRE 1999. LNCS, vol. 1740, pp. 1–16. Springer, Heidelberg (1999)
Vaughan, E.J.: Risk Management. John Wiley & Sons, Chichester (1997)
Vose, D.: Risk Analysis, 2nd edn. John Wiley & Sons, Chichester (2001)
Williamson, O.E.: The Economic Institutions of Capitalism. The Free Press, New York (1985)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Jøsang, A., Presti, S.L. (2004). Analysing the Relationship between Risk and Trust. In: Jensen, C., Poslad, S., Dimitrakos, T. (eds) Trust Management. iTrust 2004. Lecture Notes in Computer Science, vol 2995. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24747-0_11
Download citation
DOI: https://doi.org/10.1007/978-3-540-24747-0_11
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-21312-3
Online ISBN: 978-3-540-24747-0
eBook Packages: Springer Book Archive