Building Social Capital And Reducing Transaction Costs
Building social capital in a capitalist society with the rising aspirations favors trust building attitude and thus diminish any misfortune in claiming an inability to better economic welfare. Following the concept of transaction costs as well as shared norms and anticipated attitudes one brings the idea of social capital into the context of economic pay off and mutual gains achieved by accepting the collective marginal utility function. Trust perceived then as indispensable to progress responsibly establishes moral obligations towards society and in particular to other individuals in the network that participate in enhancing such activities.
Keywords- New Institutional Economics, trust, transaction costs, networks, institutions, culture JEL Classification: O10, J17, P10, N35, D31, D23
ACKNOWLEDGEMENTS- this work is a part of a larger project funded by the National Science Centre (project no. 2011/03/N/HS4/01915).