To trust or to control: Informal value transfer systems and computational analysis in institutional economics

Arbeitspapier

This paper illustrates the usefulness of computational methods for the investigation of institutions. As an example, we use a computational agent-based model to study the role of general trust and social control in informal value transfer systems (ITVS). We find that, how and in which timeline general trust and social control interact in order to make ITVS work, become stable and highly effective. The case shows how computational models may help (1) to operationalize institutional theory and to clarify the functioning of institutions, (2) to test the logical consistency of alternative hypotheses about institutions, and (3) to relate institutionalist theory with other paradigms and to practice an interested pluralism.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ICAE Working Paper Series ; No. 74

Classification and Topics

• Classification: Wirtschaft ; Computational Techniques; Simulation Modeling ; Noncooperative Games ; Institutions: Design, Formation, Operations, and Impact ; International Monetary Arrangements and Institutions ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: agent-based computational economics ; evolutionary-institutional economics ; informal value transfer systems ; general trust ; social control

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gräbner, Claudius ; Elsner, Wolfram ; Lascaux, Alex
• Event: Veröffentlichung
• (who): Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE)
• (where): Linz
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/179437
• Last update: 10.03.2025, 11:45 AM CET