A trusted party is presumed to seek to fulfill policies A policy is typically described as a principle or rule to guide decisions and achieve rational outcome. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol. Whereas a policy will contain the 'what' and the 'why', procedures or protocols contain the 'what', the 'how', the ', ethical Ethics is a branch of philosophy that addresses questions about morality — that is, concepts such as good and evil, right and wrong, justice, virtue, etc codes, law Law is a system of rules, usually enforced through a set of institutions. Laws can shape or reflect politics, economics and society in numerous ways and serves as a primary social mediator of relations between people and their previous promises.

Trust does not need to involve belief in the good character, vices, or morals of the other party. Persons engaged in a criminal activity usually trust each other to some extent. Also, trust does not need to include an action that you and the other party are mutually engaged in. Trust is a statement about what is otherwise unknown -- for example, because it is far away, cannot be verified, or is in the future.

In the social sciences, the subtleties of trust are a subject of ongoing research. In sociology Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—that uses various methods of empirical investigation and critical analysis to develop and refine a body of knowledge about human social activity, often with the goal of applying such knowledge to the pursuit of social welfare. Subject matter and psychology Psychology is the study of human or animal mental functions and behaviors. In this field, a professional practitioner or researcher is a psychologist. Psychologists are classified as social or behavioral scientists. Psychological research can be considered either basic or applied. Psychologists attempt to understand the role of mental functions in the degree to which one party trusts another is a measure of belief Belief is the psychological state in which an individual holds a proposition or premise to be true in the honesty Honesty refers to a facet of moral character and denotes positive, virtuous attributes such as integrity, truthfulness, and straightforwardness along with the absence of lying, cheating, or theft, fairness, or benevolence of another party. The term "confidence" is more appropriate for a belief in the competence of the other party. Based on the most recent research, a failure in trust may be forgiven Forgiveness is typically defined as the process of concluding resentment, indignation or anger as a result of a perceived offense, difference or mistake, and/or ceasing to demand punishment or restitution. The Oxford English Dictionary defines forgiveness as 'to grant free pardon and to give up all claim on account of an offense or debt'. The more easily if it is interpreted as a failure of competence rather than a lack of benevolence or honesty. In economics Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Current economic trust is often conceptualized as reliability in transactions. In all cases trust is a heuristic Heuristic is an adjective for experience-based techniques that help in problem solving, learning and discovery. Archimedes is said to have shouted "Heureka" (later converted to "Eureka") after discovering the principle of displacement in his bath. A heuristic method is used to come to a solution rapidly that is hoped to be decision rule, allowing the human to deal with complexities that would require unrealistic effort in rational reasoning.

Sociology

From this perspective, trust is a mental state, which cannot be measured directly. Confidence in the results of trusting may be measured through behavior, or alternatively, one can measure self-reported trust (with all the caveat surrounding that method). Trust may be considered a moral choice, as in the legend of Damon and Pythias, or at least a heuristic Heuristic is an adjective for experience-based techniques that help in problem solving, learning and discovery. Archimedes is said to have shouted "Heureka" (later converted to "Eureka") after discovering the principle of displacement in his bath. A heuristic method is used to come to a solution rapidly that is hoped to be, allowing the human to deal with complexities that outgo rationalistic reasoning. In this case, machine-human trust is meaningless, because computers have no moral sense and rely on rational computations. Any trust in a device under this characterization is computer-mediated trust of the user of the machine in the designer and creator of the device; who has implemented the rational rules into the device. Francis Fukuyama Yoshihiro Francis Fukuyama is an American philosopher, political economist, and author and Tyler are academics who advocate this conception of trust – as moral and not directly observable.

A second perspective in social theory Social theories are theoretical frameworks which are used to study and interpret social phenomena within a particular school of thought. An essential tool used by social scientists, theories relate to historical debates over the most valid and reliable methodologies , as well as the primacy of either structure or agency. Certain social theories comes from the classic Foundations of Social Theory by James S. Coleman James Samuel Coleman was an American sociological theorist who studied the sociology of education, public policy, and was one of the earliest users of the term "social capital". His Foundations of Social Theory stands as one of the most important sociological contributions of the late-20th century. Coleman offers a four-part definition:

1. Placement of trust allows actions that otherwise are not possible (i.e. trust allows actions to be conducted based on incomplete information on the case in hand).
2. If the person in whom trust is placed (trustee) is trustworthy, then the trustor will be better off than if he or she had not trusted. Conversely, if the trustee is not trustworthy, then the trustor will be worse off than if he or she had not trusted (this is reminiscent of the classical prisoner's dilemma The prisoner's dilemma is a fundamental problem in game theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so. It was originally framed by Merrill Flood and Melvin Dresher working at RAND in 1950. Albert W. Tucker formalized the game with prison sentence payoffs and gave it the ").
3. Trust is an action that involves a voluntary transfer of resources (physical, financial, intellectual, or temporal) from the truster to the trustee with no real commitment from the trustee (again prisoner's dilemma).
4. A time lag exists between the extension of trust and the result of the trusting behavior.

The strength of Coleman's definition is that it allows for discussion of trust behavior. These discussions have been particularly useful in reasoning about human-computer trust, and trust behaviors.

A critical element in studies of trust behavior is power. One who is in a position of dependence cannot be said to trust another in a moral sense, but can be defined as trusting another in the most strict behavioral sense. Trusting another party when one is compelled to do so is sometimes called reliance, to indicate that the belief in benevolence and competence may be absent, while the behaviors are present. Others refer only to coercion.

Coleman's definition does not account for the distinction between trust(worthiness) as a moral attribute and trustworthiness as mere reliability. It is Annette Baier Annette C. Baier (born 1929) is a well-known moral philosopher and Hume scholar, focusing in particular on Hume's moral psychology. For most of her career she taught in the philosophy department at the University of Pittsburgh, having moved there from Carnegie Mellon University. She retired to her native Dunedin, New Zealand, where she graduated (Trust and Antitrust, in Ethics, 1986) who characterizes contexts of trust as structures of interaction in which moral obligations act upon the trustees.

The substantive conflict in the social sciences is whether trust is entirely internal, and only confidence is observable, or whether trust behaviors (and self reported levels of trust) can meaningfully measure trust in the absence of coercion. Note however that many languages (e.g. Dutch or German) do not distinguish between the words trust and confidence, which is complicating this issue. The distinction between trust and confidence is an unsolved issue in current trust/confidence research.

In general, trust is essential as Social institutions Social organization or social institution, refers to a group of social positions, connected by social relations, performing a social role. It can also be defined in a narrower sense as any institution in a society that works to socialize the groups or people in it. Common examples include education, governments, families, economic systems,, such as governments, economies, and communities require trust to function. Therefore trust and altruism Altruism is selfless concern for the welfare of others. It is a traditional virtue in many cultures, and a core aspect of various religious traditions such as Judaism, Christianity, Islam, Hinduism, Jainism, Buddhism, Confucianism, Sikhism, and many others. Altruism is the opposite of selfishness are areas of study for both economists and management scientists^[1] although these concepts go beyond strict rational economics.

Psychology

In psychology trust is believing the person who you trust to do what you expect. It starts at the family and grows to others. According to the psychoanalyst Psychoanalysis is a body of ideas developed by Austrian physician Sigmund Freud and continued by others. It is primarily devoted to the study of human psychological functioning and behavior, although it can also be applied to societies. Psychoanalysis has three applications: Erik Erikson Erik Erikson was a Danish-German-American developmental psychologist and psychoanalyst known for his theory on social development of human beings. He may be most famous for coining the phrase identity crisis. His son, Kai T. Erikson, is a noted American sociologist development of basic trust is the first state psychosocial development Erikson's stages of psychosocial development as articulated by Erik Erikson explain eight stages through which a healthily developing human should pass from infancy to late adulthood. In each stage the person confronts, and hopefully masters, new challenges. Each stage builds on the successful completion of earlier stages. The challenges of stages occurring, or failing, during the first two years of life. Success results in feelings of security, trust, and optimism, while failure leads towards an orientation of insecurity and mistrust.^[2]

Trust is integral to the idea of social influence Social influence occurs when an individual's thoughts or actions are affected by other people. Social influence takes many forms and can be seen in conformity, socialization, peer pressure, obedience, leadership, persuasion, sales, and marketing. Harvard psychologist, Herbert Kelman identified three broad varieties of social influence: it is easier to influence or persuade someone who is trusting. The notion of trust is increasingly adopted to predict acceptance of behaviors by others, institutions Institutions are structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human collectivity. Institutions are identified with a social purpose and permanence, transcending individual human lives and intentions, and with the making and enforcing of rules governing cooperative human (e.g. government agencies A government agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency[citation needed]. There is a notable variety of types of agency. Although usage differs, a government agency is normally distinct both from a) and objects such as machines A machine is a device that uses energy to perform some activity. In common usage, the meaning is that of a device having parts that perform or assist in performing any type of work. A simple machine is a device that transforms the direction or magnitude of a force without consuming any energy. The word "machine" is derived from the Latin. However, once again perception of honesty, competence and value similarity (slightly similar to benevolence) are essential. There are three different forms of trust. Trust is being vulnerable to someone even when they are trustworthy; Trustworthiness is the ability to trust, and trust propensity being able to rely on them Relationship and Risk taking. Once trust is lost, by obvious violation of one of these three determinants, it is very hard to regain. Thus there is clear asymmetry in the building versus destruction of trust. Hence being and acting trustworthy should be considered the only sure way to maintain a trust level.

Increasingly much research has been done on the notion of trust and its social implications:

• Barbara Misztal in her book^[3] attempts to combine all notions of trust together. She points out three basic things that trust does in the lives of people: It makes social life predictable, it creates a sense of community In biological terms, a community is a group of interacting species sharing an environment. In human communities, intent, belief, resources, preferences, needs, risks, and a number of other conditions may be present and common, affecting the identity of the participants and their degree of cohesiveness, and it makes it easier for people to work together.
• In the context of sexual trust Riki Robbins^[4] describes four stages of trust:
• In the context of Information theory Information theory is a branch of applied mathematics and electrical engineering involving the quantification of information. Historically, information theory was developed by Claude E. Shannon to find fundamental limits on signal processing operations such as compressing data and on reliably storing and communicating data. Since its inception it Ed Gerck defines and contrasts trust with social functions such as ^[5] power, surveillance, and accountability:

In addition to the social influence, in organizational settings, trust may have a positive influence on the behaviors, perceptions, and performances of a person. One factor that enhances trust in a human being is facial resemblance. Evidence shows through manipulation of facial resemblance in a two person sequential trust game that having similar facial features (facial resemblance) enhanced trust in their partner.^[6] Structure often creates trust in a person that encourages them to feel comfortable and excel in the workplace. Working anywhere may be stressful and takes effort. By having a conveniently organized area to work on, concentration will increase as well as effort. Structure is not just a method of order. It increases trust and therefore makes a workplace manageable. A structured, ordered environment produces trust as one may contain increased cooperation and perform on a higher level.

People may work together and achieve success through trust while working on projects that rely on each individual’s contribution. ^[7]12/17/2008

Conversely, where trust is absent, projects can fail, especially if this lack of trust has not been identified and addressed. This is one facet of VPEC-T analysis: This thinking framework is used when studying information systems. Identifying and dealing with cases where information providers, information users, and those responsible for processing information do not trust one another can result in the removal of a risk factor for a project.

One's social relationship characterized by low trust and norms that discourage academic engagement are expected to be associated with low academic achievement. Individuals that are in relationships characterized by high levels of social trust are more apt to openly exchange information and to act with caring benevolence toward one another than those in relationships lacking trust.^[8]

An important key to treating sexual victimization of a child is the rebuilding of trust between parent and child. Failure for the adults to validate the sexual abuse contributes to the child's difficulty towards trusting the self and others.^[9] Trust is often affected by the erosion of a marriage. Children of divorce do not exhibit less trust in mothers, partners, spouses, friends, and associates than their peers of intact families. The impact of parental divorce is limited to trust in the father. ^[10]

Philosophy

Some philosophers argue that trust is more than a relationship of reliance. Philosophers such as Annette Baier have made a difference between trust and reliance by saying that trust can be betrayed, whilst reliance can only be disappointed (Baier 1986, 235)^[11]. Carolyn McLeod explains Baier's argument by giving the following examples: we can rely on our clock to give the time, but we do not feel betrayed when it breaks, thus, we cannot say that we trusted it; we are not trusting when we are suspicious of the other person, because this is in fact an expression of distrust (McLeod 2006)^[12]. Thus, trust is different from reliance in the sense that the truster must accept the risk of being betrayed.

Economics

Economists have studied trust both on the individual level and at the level of societies. At the individual level, trust and trustworthiness (the reciprocation of trust) are often measured using the "trust game" ^[13]. In this game, all participants receive an endowment of money, for example, $10. After identical instructions and without any deception, participants are formed randomly into dyads and assigned the role of decision-maker 1 (DM1) or decision-maker 2 (DM2). DM1 is asked to decide what amount of money to transfer to DM2. This money is removed from DM1's account and, typically, tripled in DM2's account. The DM1 to DM2 transfer is thought to measure trust. DM2 is then told of the transfer and is given the opportunity to return some, all, or none of the largess to DM1. The DM2 to DM1 transfer measured trustworthiness. The subgame perfect Nash equilibrium A common method for determining subgame perfect equilibria in the case of a finite game is backward induction. Here one first considers the last actions of the game and determines which actions the final mover should take in each possible circumstance to maximize his/her utility. One then supposes that the last actor will do these actions, and is for DM2 to return nothing and for DM1 to therefore send nothing. Only 2-10% of DM2s use this strategy ^[14]. This behavior was not understood until Zak and colleagues demonstrated, using a neuroeconomics Neuroeconomics combines psychology, economics, and neuroscience, to study how people make decisions. It looks at the role of the brain when we evaluate decisions, categorize risks and rewards, and interact with each other. It can be included in the field of social neuroscience experiment with blood draws, that oxytocin Oxytocin is a mammalian hormone that acts primarily as a neurotransmitter in the brain. Also known as alpha-hypophamine (α–hypophamine), oxytocin has the distinction of being the very first polypeptide hormone to be sequenced and synthesized biochemically by Vincent du Vigneaud et al. in 1953 is released by the brains of DM2s in proportion to the money they receive from DM1s. Oxytocin levels also predict the degree of trustworthiness (money returned) by DM2s ^{[15] [16]} Intranasal oxytocin infusion into human beings have demonstrated the causal relationship between oxytocin and trust ^{[17] [18]}.

Mathematical models of trust at the level of societies have identified the types of environments that promote or inhibit trust. Surveys of trust levels, a component of social capital Social capital is a sociological concept, which refers to connections within and between social networks. Though there are a variety of related definitions, which have been described as "something of a cure-all" for the problems of modern society, they tend to share the core idea "that social networks have value. Just as a, show trust varying from two percent of Brazilians reporting that they trust their countrymen, to 65 percent of Norwegians reporting they trust those in their country ^[19]. Zak & Knack (2001) have shown that three factors account for this order-of-magnitude variation in trust: the economic environment (income and the income distribution), the legal environment (institutions that enforce contracts), and the social environment (social similarity or differences) . Empirical tests of this model show that these three factors account for 76% of the variation in trust levels across countries ^[20]. This paper also showed that trust is among the strongest predictors economists have found of whether a country's per capita income will grow or remain static. Trust works as an economic lubricant, reducing the transactions costs associated with investments and in this way, promoting new business formation, employment and prosperity. Zak & Knack report that a 15 percentage point increase in the proportion of people in a country who think others are trustworthy raises income per person by 1 percent per year for every year thereafter. The Zak & Knack (2001) model also predicts that if trust levels are too low, no income growth will occur. The low-trust poverty trap A Poverty trap is "any self-reinforcing mechanism which causes poverty to persist." The trap becomes cyclical and begins to reinforce itself if steps are not taken to break the cycle occurs for the countries in their sample when trust falls below 30%.

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