This paper presents evidence that “social capital ” matters for measurable economic performance, using indicators of trust and civic norms from the World Values Surveys for a sample of 29 market economies. Memberships in formal groups—Putnam’s measure of social capital—is not associated with trust or with improved economic performance. We find trust and civic norms are stronger in nations with higher and more equal incomes, with institutions that restrain predatory actions of chief executives, and with better-educated and ethnically homogeneous populations. I.

We examine the separation of ownership and control for 2,980 corporations in nine East Asian countries. In all countries, voting rights frequently exceed cash-#ow rights via pyramid structures and cross-holdings. The separation of ownership and control is most pronounced among family-controlled "rms and small "rms. More than two-thirds of "rms are controlled by a single shareholder. Managers of closely held "rms tend to be relatives of the controlling shareholder's family. Older "rms are generally family-controlled, dispelling the notion that ownership becomes dispersed over time. Finally, signi"cant corporate wealth in East Asia is concentrated among a few families. � 2000 Elsevier Science S.A. All rights reserved. JEL classixcation: G32; L22

The proliferation of web-based social networks has lead to new innovations in social networking, particularly by allowing users to describe their relationships beyond a basic connection. In this dissertation, I look specifically at trust in web-based social networks, how it can be computed, and how it can be used in applications. I begin with a definition of trust and a description of several properties that affect how it is used in algorithms. This is complemented by a survey of web-based social networks to gain an understanding of their scope, the types of relationship information available, and the current state of trust. The computational problem of trust is to determine how much one person in the network should trust another person to whom they are not connected. I present two sets of algorithms for calculating these trust inferences: one for networks with binary trust ratings, and one for continuous ratings. For each rating scheme, the algorithms are built upon the defined notions of trust. Each is then analyzed theoretically and with respect to simulated and actual trust networks to determine how accurately they calculate the opinions of people in the system. I show that in both rating schemes the algorithms

ABSTRACT: This paper aims to predict consumer acceptance of e-commerce by proposing a set of key drivers for engaging consumers in on-line transactions. The primary constructs for capturing consumer acceptance of e-commerce are intention to transact and on-line transaction behavior. Following the theory of reasoned action (TRA) as applied to a technology-driven environment, technology acceptance model (TAM) variables (perceived usefulness and ease of use) are posited as key drivers of e-commerce acceptance. The practical utility of TAM stems from the fact that e-commerce is technology-driven. The proposed model integrates trust and perceived risk, which are incorporated given the implicit uncertainty of the e-commerce environment. The proposed integration of the hypothesized independent variables is justified by placing all the variables under the nomological TRA structure and proposing their interrelationships. The resulting research model is tested using data from two empirical studies. The first, exploratory study comprises three experiential scenarios with 103 students. The second, confirmatory study uses a sample of 155 on-line consumers. Both studies strongly support the e-commerce acceptance model by validating the proposed hypotheses. The paper discusses the implications for e-commerce theory, research, and practice, and makes several suggestions for future research.

This study explores how social capital and human and economic variations in poor localities influence the capacity for community efficacy. Through a multivariate analysis using 497 households in poor localities of Addis Ababa, we investigate how social capital dimensions (density of membership, informal network, trust and reciprocity) and human and economic characteristics (education and welfare status) of the households are related to community efficacy. Community efficacy is highly associated with increased participation in local associations; trust in the community, confidence in local institutions and pattern of reciprocity among inhabitants. These findings provide qualified support for the systemic model of local social organization but challenge theory of social disorganization that predicts lower levels of social capital in poor communities engendering lower capacity of community efficacy.

Using data from the Tanzania Social Capital and Poverty Survey (SCPS), a large scale survey which asked individuals about the extent and characteristics of their associational activity and their trust in various institutions and individuals, we construct a measure of “social capital ” in rural Tanzania. By matching this measure of social capital with data on household incomes in the same villages both from the SCPS and an earlier household survey, the Human Resources Development Survey (HRDS) we show that “social capital ” is indeed both capital, in that it raises incomes, and social, in that household outcomes depend on village not just household social capital. The magnitude of social capital’s effect on incomes is impressively large: a one standard deviation increase in village social capital increases household expenditures per person (a proxy for income) by at least 20 to 30 percent. This impact is as large as an equivalent increase in non-farming assets or tripling the level of education. The data from the two surveys also allow the identification of some of the proximate channels through which social capital affects incomes: better publicly provided services, greater use of modern agricultural inputs, more community activity, and greater use of credit in agriculture. The findings, interpretations, and conclusions expressed and in this paper are entirely those of the authors. They do not necessarily reflect the views of the World Bank, its Executive Directors, or the countries they represent. 1

Most contracts, whether between voters and politicians or between house owners and contractors, are incomplete. “More law,” it typically is assumed, increases the likelihood of contract performance by increasing the probability of enforcement and/or the cost of breach. This paper studies a contractual relationship where the first mover has to decide whether she wants to enter a contract without knowing whether the second mover will perform. We analyze how contract enforceability affects individual performance for exogenous preferences. Then we apply a dynamic model of preference adaptation and find that economic incentives have a non–monotonic impact on behavior. Individuals perform a contract when enforcement is strong or weak but not with medium enforcement probabilities: Trustworthiness is “crowded in” with weak and “crowded out” with medium enforcement. In a laboratory experiment we test our model’s implications and find support for the crowding prediction. Our finding is in line with the recent work on the role of contract enforcement and trust in formerly Communist countries.

This paper specifies a generalizable model of exchange processes and develops a processstakeholder analysis framework to evaluate alternative market designs. This framework is applied to analyze a number of information technology initiatives in the Dutch flower markets. The Dutch flower auctions are the world’s leading centers for trading cut flowers and potted plants. We undertake a cross-case analysis and apply our framework to analyse successes and failures in the introduction of new IT-based trading mechanisms in these markets. Based on our study, we develop a number of testable propositions on: the separation of physical and informational processes in trading, the responses of stakeholders to changes in available information due to IT initiatives, and economic and incentive conditions required for adoption of new trading processes. Finally, our detailed cases illustrate the institutional and incentive constraints, and complexities encountered in the introduction of new electronic markets.

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Successful e-commerce user experience design depends on a large number of factors. This paper focuses on consumers' acceptance of and trust in an e-commerce system, based on the transaction's value and perceived risk. The model of trust for ecommerce (MoTEC) by Egger (2000) provides a framework making explicit factors likely to affect customer trust. For each model component, design principles are provided, along with more concrete guidelines. It will be shown that the user interface is only one element of the customer experience. Designing for trust therefore requires user experience strategists to look beyond the mere design of the web site and pay attention to more general management and marketing issues. Keywords Human-computer interaction, e-commerce, user experience, trust 1.