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4 Ways To Know Who To Trust

Alex HormoziJune 10, 20269m
In a Nutshell

Trust is giving someone the power to punish you, either through shared secrets or by keeping your word, and occurs in four forms depending on who bears the risk and who delivers consequences. To decide if trust is warranted, check whether the person has a proven record of not harming you and whether betrayal would cost them more than the benefit. Trust builds through repeated non-betrayal on small disclosures and collapses with a single violation, while being trustworthy requires treating shared information as permanently off-limits for future use.

AI-Generated Notes

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Trust is difficult to define and people often struggle with what the word actually means. The concept is examined from a behavioral perspective by asking how someone can observe that trust has occurred. There are four types of trust rather than a single form, and these types correspond to two variables: who is at risk and who does the punishing.

Trust means allowing yourself to become punishable by another person. When sharing a secret, the sharer gives the recipient something that could be used to punish them. The act of trusting is essentially making a bet that the other person will not use that information or power against them. The risk belongs to the person making themselves vulnerable.

The four types of trust are structured around two variables. The first type involves you being at risk while the other person is the potential punisher. The second type involves someone else being at risk while you have the power to punish them, meaning you are being asked to be trustworthy.

The third type occurs when you are at risk but the environment or reality serves as the punisher. An example is asking someone to pick up your child. If they fail to follow through, the environment punishes you through the consequences of the missed pickup, even though the person did not actively harm you. The fourth type involves giving or receiving advice. If someone follows advice and a bad outcome occurs, they lose trust in that person's guidance.

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