Trust and Partner Selection in Social Networks: An Experimentally Grounded Model

Abstract

This paper presents an experimentally grounded model on the relevance of partner selection for the emergence of trust and cooperation among individuals. By combining experimental evidence and network simulation, our model investigates the link of interaction outcome and social structure formation and shows that dynamic networks lead to positive outcomes when cooperators have the capability of creating more links and isolating free-riders. By emphasizing the self-reinforcing dynamics of interaction outcome and structure formation, our results cast the argument about the relevance of interaction continuity for cooperation in new light and provide insights to guide the design of new lab experiments.