This paper employs the methodology of Agent-Based Computational Economics (ACE) to investigate under what conditions trust can be viable in markets. The emergence and breakdown of trust is modeled in a context of multiple buyers and suppliers. Agents adapt their trust in a partner, the weight...

One of the most important functions of a simultaneous equation model is prediction the values of endogenous variables given the values of the predetermined variables and a lot of work has been done to estimate the accuracy of such predictions. Hooper and Zellner (1961) obtained the covariance...