“Trust is similar in its fragility.  At the individual level, of course, these two concepts (reputation and trust) are inter-related.  We trust those who have a trustworthy reputation, and we don’t trust those who are known to be untrustworthy.  Once bitten, twice shy, or fool me one time shame on you, fool me again shame on me.  But trust is also elusive and fragile once found at the system level as well.” Read more.

 

Peter Boettke

Coordination Problem Blog, March 10, 2010.