Symposium: Trust Relationships Part 1 of 2: Trusting and Non-trusting on the Internet

... The Puzzle: The Internet is a wonderful innovation, allowing people around the world to communicate, trade, and obtain services. ... As compared to verification cost in real space, verification cost on the Internet is higher. ... Internet, and perhaps also real space, activities are policed by private sector institutions and professional gatekeepers. ... Not surprisingly, they are mostly the same mechanisms used in real space, which are adjusted to the new Internet environment. ... Benefits to shoppers on the Internet are also higher than in real space in terms of savings of time. ... Thus, both costs and risks for buyers (and some for sellers) on the Internet are higher than in real space. ... Internet businesses have followed the real space model, and formed societies whose main function is to gain the customers' trust. ... Both on the Internet and in real space, trustworthiness can evaporate on disappointing evidence. ... For a similar reason, the value of real space brand names has risen on the Internet. ... In some situations, enforcing the law against violations on the Internet may be as easy, or even easier, than enforcing the law in real space. ... In real space and on the Internet, trust and non-trust pose the same issues. ...