Chinese Journal of Sociology

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MicroMechanism in the Formation of Systems and Trust:A Review of Fang Lijie’s “Formation Process of Institutional Trust”

Zhao Deyu, College of Social Development and Public Policy, Fudan University     

  1. Zhao Deyu, College of Social Development and Public Policy, Fudan University  
  • Online:2010-11-24 Published:2010-11-24
  • Contact: Zhao Deyu, College of Social Development and Public Policy, Fudan University E-mail:deyuzhao@fudan.edu.cn
  • About author:Zhao Deyu, College of Social Development and Public Policy, Fudan University
  • Supported by:

    Project was supported by grant program about “Aging and Community Medical Health Policy” (08FCZD013) from Innovation Base of National Philosophy Social Science “Public Management and Public Policy”.

Abstract:

This work provides a microbehavioral foundation for identifying the trust establishing mechanism from the perspective of the game theory, and tries to reinterpret the trust issue in the new rural cooperative medical system. Trust can be defined as the generalized and stable expectations on each side in a business transaction, a result of people’s rational choice when the interesttied party in a trading relationship is likely to utilize cooperative strategies to optimize benefits to all stakeholders. The key for trust to be established is for expectations to be continuously reinforced and stabilized through a number of trigger mechanisms. To account for the new rural cooperative medical system and its related issue of trust, many trigger mechanisms are believed to have played an active role in strengthening the feedback loop. Through the positive feedback from such trigger mechanisms as “persuasion and political mobilization”, “increased subsidy to special groups”, “creation of family accounts”, “higher reimbursement rates”, and “public sharing of information”, farmers have come to believe the medical insurance agency and health service providers. To them now, the promise in the cooperative behavioral strategies can be expected and is trustable.

Key words: trading relationship , system , trust , trigger mechanism