Still, trust can be grounded in the belief that another person is guided by norms or moral dispositions. Whether we know that these, and not encapsulated interest, are the grounds for seemingly trustworthy behavior will commonly be important for explaining behavior and understanding social practices and institutions. We can build institutional devices that mimic the incentives of the encapsulated-interest account, so that we can relatively easily see how to overcome problems of the lack of trust and trustworthiness in many contexts in which, for example, ongoing relationships cannot motivate cooperation.

DEFINE: Distinguishes two grounds of trust: encapsulated interest vs. shared norms or moral dispositions.

Russell Hardin, Trust and Trustworthiness, loc. 279