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The crisis was an extreme example of the cost of trust.
But in the second case, where the cost of trust was increased, the frequency of the trusting outcome fell substantially.
The benefits of this decentralized model emerge when weighed against the current economic system's cost of trust.
Other manifestations of the cost of trust are felt not in what we do but in what we can't do.
Yet their analyses typically don't weigh those costs against the far-reaching societal cost of trust that the new models seek to overcome.
It's that it could drastically reduce the cost of trust by means of a radical, decentralized approach to accounting and, by extension, create a new way to structure economic organizations.
Similar(49)
Technology is changing almost every aspect of human life, but as technology advances so too does the cost of trusting technology.
The cost of knee-jerk paranoia is unhinged belief in space dinosaurs or secret societies that fake moon landings – but the cost of trusting the state is out-of-control intelligence agencies, prisons full to bursting, the abandonment of the right to privacy and a fair trial, and endless war.
The cost of establishing trust — you can now synthesize trust on an open platform and people who've never met can trust each other to do certain things.
The trust had expected to receive the money from the Department of Health following the announcement in February that it was putting aside additional funding of about £1.5bn to support the PFI costs of trusts in England that were struggling with their repayments.
However, if the new cost of shattered trust is $11 billion and counting upwards, starting with the basics to restore trust and rebuild reputation is the only way.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com