Abstract:

Trust is a psychological state that individuals are vulnerable to be hurt voluntarily, based upon an positive expectation of others’ intention and reciprocity. Trust in behavioral economics refers to approval of positive expectation and capacity that trade partners fulfill their commitment under the specific circumstance of game, negotiation, consumption and economical trade etc, based on limited information and experience. At present, psychological mechanisms and biological foundation are two main kinds of explanations to research the formation mechanisms as to this phenomenon. Psychological mechanisms mainly consist of reflective-impulsive model and social preferences while biological foundation mainly relates to some structures, such as amygdaloidal nucleus, insula etc, and other hormones such as oxytocin, testosterone etc. Evidences show that trust in the economy is influenced by some factors, such as communication, experience, reputation and facial features etc. Further researches are expected to explore the theoretical explanation and biological foundation of trust in the economy, conduct its cross-cultural researches and investigate its ecological validity and coping strategies.

Key words: behavioral economics, trust, game, reflective-impulsive model, social preferences