Jamal Awil

← Trust - Making and Breaking Cooperative…

Buyers transact only when seller honesty exceeds a threshold [fact]

I conclude that if the seller's reputation for honesty is high — specifically if p exceeds 8 — the potential buyer will engage in a transaction. If it is low — specifically if p is less than 6 — he will not enter

DEFINE: p represents the probability threshold for seller honesty reputation that determines whether a buyer engages in a transaction.

Diego Gambetta, Trust - Making and Breaking…, loc. 922