Usually when we discuss the economy, we focus on topics like GDP, inflation, fiscal budget, tax policy or the stock market. All these aspects are undoubtedly the backbone of the economy, but one thing that is very fundamental yet often neglected is “trust.”
Have you ever wondered why we cannot carry out any economic transaction without trust? Think about it: when you buy goods from a shop, don’t you trust that the shopkeeper will give you the right thing and at the right price? When you transfer money on an app, don’t you trust that the money will go to the account you mentioned? When a company gives a job to someone, it does so with the trust that the employee will work honestly. And when we vote for a democratic government, that too is a kind of trust—the trust that it will work for our welfare.
Trust is not just an abstract or emotional issue; it directly impacts every level of the economy. It is the axis of every relationship between consumer and seller, worker and employer, and citizen and government. And that is why Professor Benjamin Ho’s book Why Trust Matters brings forth a unique perspective—one that inspires us to look at the economy not just through the lens of data, but through human relationships and emotions.
The Core of Every Transaction: Trust
When you think deeply, it becomes clear that our daily economic activities—whether small or big—are all based on trust. When we buy something from a grocery store, we trust not only the quality of the goods but also the behavior of the shopkeeper, his promises and his honesty. This trust is often unspoken and unconditional.
Big companies spend crores to make their brands ‘trustworthy’—because ’they know that customers buy trust, not just products. Once a brand wins the trust of a customer, customers come back again and again. Similarly, the owner of an organization gives freedom and responsibility to his employees only when he trusts them to work in the best interest of the organization.
All this makes it clear that if there is no trust, we can neither sell products nor provide services nor run any system for a long time. In such a situation, the economy is not just a matter of rules and contracts—it becomes a social contract, the basis of which is trust.
Research started with a simple question: apology and trust.
Professor Benjamin Ho’s interesting research started with a very human question—”How “does apologizing improve relationships?” This question was asked to him by his roommate, and from here he got the idea in his mind: Can this social behavior also be understood from an economic and mathematical point of view? Is an apology just an emotional reaction or is it also a tool for restoring trust?
With the help of game theory and experiments, he analyzed how, when, and under what circumstances apologies are effective. He experimented with cases of apology and compensation in the medical field, industrial accidents such as chemical spills, and online services such as Uber to find out to what extent apologies can restore trust.
For example, at Uber they looked at what types of apologies customers responded more positively to—whether they admitted fault or simply expressed regret for causing inconvenience. These experiments showed that apologies are not just words but a strategic tool that has the potential to repair social and economic relationships.
The pandemic and the ups and downs of trust in institutions
The COVID-19 pandemic not only crippled health systems and economies around the world but also tested people’s trust. Professor Ho conducted an experiment during the pandemic to see how fear of the pandemic affects trust in others—especially outsiders such as migrants or refugees.
The results were surprising. Contrary to popular belief, as people’s fear of the virus increased, they showed more trust in outsiders. This is because when faced with a shared crisis, humans tend to break boundaries and move towards solidarity.
However, another interesting pattern was observed—as the pandemic began to settle down and people began to think in terms of their own priorities, trust in the same institutions—such as schools or health departments—that were once highly trusted, decreased. This suggests that trust is not a static element but a dynamic process that changes with time, experience and circumstances.
When mathematics and experiments reveal the truth of trust
Professor Ho believes that mathematics is not just a language of numbers but a way of thinking. He has tried to understand trust analytically with the help of game theory, Bayesian inference and computer-based experiments.
He created computer games in which participants make certain economic decisions, and through these decisions their level of trust is measured. For example, a participant has to decide whether to give money to a stranger or not—and whether the other person will return the money to him or not. Through these games, an attempt is made to understand in which situations people trust others and in which situations they do not.
He also applied this model to complex social issues such as inequality, identity, and climate change. This makes it clear that trust is not just a moral value but a behavioral pattern that can be understood and tested scientifically.
Research and enthusiasm for trust among students
At Columbia University, Professor Ho started a course on a very relevant and contemporary topic called ‘The Economics of Trust.’ It is not just an academic subject but an experimental workshop where students formulate their own research questions and then use game theory and statistical experiments to find answers to them.
In previous years, students have worked on topics such as –Are patient individuals more trustworthy? Does trust play a role in drug trials? Do married and unmarried people receive different levels of social trust? These questions are not only new but also help in understanding the complexities of modern society.
This also makes it clear that the coming generation is now getting ready to see the economy not only in the language of profit and loss but also in the light of social relationships and values.
Complexity, Creativity, and Faith—at One Dinner Table
When Professor Ho was asked who he would invite to dinner if he had the opportunity to invite three scholars, his answer reflects the depth of his perspective.
He chose:
- Kurt Gödel—whose mathematical theorems tested the limits of logic,
- M. C. Escher—whose paintings are a wonderful blend of mathematics and illusion,
- J. S. Bach—whose musical works are a fusion of structure and emotion.
He chose these three because they embody creativity, structure, and complexity. And this perspective is what he draws from the book Gödel, Escher, Bach, which shows that when we look at mathematics, art, and music together, we get a true understanding of the complexity of life.
Conclusion: Trust is the invisible but strong thread of every economic relationship.
To understand the economy, we need human relationships and emotions, not just data, charts or policies. And at the core of that relationship is trust.
Trust is the invisible thread that binds every economic, social and institutional structure together. Whether it is the trust of customers in brands, employees in companies, citizens in governments, or a society in outsiders.
Professor Benjamin Ho’s research teaches us that trust is not a ‘soft subject’ but a concrete economic force that leads us to better policy, better decisions and a better society.
It is time to read economics not just in the language of numbers, but also in the language of trust—only then will we be able to move towards a holistic and human economy.
