Do Regulators’ Democratic Qualities increase Willingness to Trust Companies? An Experimental Study
Various scientific and technological developments that promise to improve the overall standard of living are often impose certain risks for users. Previous studies have shown that consumers rely on regulatory institutions to mitigate these risks and trust companies and their services. This paper aims to better understand the role of regulation in cultivating public trust in companies. In particular, it addresses the extent to which a regulator's democratic qualities of transparency, participation, inclusiveness, and accountability increase trust in companies. This paper conducts an experimental survey (N=1984) to test the hypothesis that all four democratic qualities of regulatory agencies increase trust in firms. The survey focused on a fictitious Fintech application that requires full access to personal financial data. Contrary to expectation, the results show that of the four democratic qualities of the regulator, only inclusiveness has a direct and positive impact on trust in the company. It was also found that trust in the company increases when the regulator has all democratic qualities, mediated by trust in the regulator. This paper contributes to the understanding that regulatory agencies should increase their democratic qualities to ensure the optimization of the economy and market
Year of publication: |
2022
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Authors: | Maman, Libby |
Publisher: |
[S.l.] : SSRN |
Subject: | Experiment | Vertrauen | Confidence | Zahlungsbereitschaftsanalyse | Willingness to pay | Regulierung | Regulation |
Saved in:
freely available
Extent: | 1 Online-Ressource (37 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 28, 2022 erstellt |
Other identifiers: | 10.2139/ssrn.4121915 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014030730
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