Trust Issues? How Social Circles Impact Your Faith in Institutions

Elliot Brynn in Culture & Society August 2025 • 4 min read.

"Unpacking the dynamics of trust: Does sharing experiences fortify or fracture our confidence?"

In an increasingly interconnected world, the question of whom and what to trust has become paramount. From governments to healthcare providers, individuals constantly assess the trustworthiness of institutions that shape their lives. The COVID-19 pandemic underscored this dynamic, highlighting how trust—or the lack thereof—impacts everything from vaccination rates to adherence to public health guidelines.

While personal experience undoubtedly plays a role in shaping individual perceptions, the influence of our social circles cannot be overlooked. Peer-to-peer communication, whether through casual conversations or online interactions, can significantly sway our beliefs about the trustworthiness of various entities. This raises a crucial question: how do our social interactions impact our trust in institutions?

A new research paper delves into this very question, exploring the intricate ways in which individuals navigate trust in an age of information overload and social influence. By examining models of communication and learning, the study sheds light on the dynamics of trust formation and the role of shared experiences versus mere observation in shaping our beliefs.

Decoding the Dynamics: How Trust is Built and Broken

Figures connected to a building by trust strings.

The research centers around the scenario of individuals repeatedly deciding whether to trust an institution. Using Bayesian learning—a statistical method for updating beliefs based on new evidence—the agent assesses the institution's true trustworthiness. This approach assumes "myopic rationality," where decisions are based on immediate gains without considering long-term consequences. Though seemingly simple, the model captures essential elements of decision-making under uncertainty.

Interestingly, the study extends the single-agent model to explore the dynamics between two "truster" agents, each independently evaluating the same institution. Here, the researchers introduce two distinct communication models:

Observable Rewards: Agents openly share their experiences (positive or negative) with the institution.
Observable Actions: Agents only witness each other's actions—whether they choose to trust or not—without divulging the specifics of their experiences.

These models allow for a comparative analysis of how different forms of communication influence trust dynamics. Underneath the surface, each agent builds or breaks its decisions upon its own experiences, their observations from their peers and third party, plus all of the collective information that is received throughout the decision process.

Key Insights: Navigating Trust in a Social World

The study reveals several compelling insights. First, communication, in general, strengthens the accuracy of trust assessments. Two agents exchanging information are more likely than a single agent to correctly discern an institution's trustworthiness. Secondly, communication fosters long-term trust when the institution is genuinely trustworthy and facilitates timely exits when it is not. This highlights the value of social learning in navigating complex relationships.

About this Article -

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2303.01921,

Title: Trusting: Alone And Together

Subject: physics.soc-ph econ.th

Authors: Benedikt V. Meylahn, Arnoud V. Den Boer, Michel Mandjes

Published: 03-03-2023

Everything You Need To Know

How do social interactions affect trust in institutions, according to the study?

The study suggests that social interactions significantly influence trust in institutions. Specifically, the research indicates that communication, whether through sharing experiences or observing actions, strengthens the accuracy of trust assessments. When agents exchange information, they are more likely to correctly discern an institution's trustworthiness compared to a single agent. Furthermore, communication fosters long-term trust when the institution is genuinely trustworthy and facilitates timely exits when it is not.

What is Bayesian learning, and how does it relate to the study's model of trust?

Bayesian learning is a statistical method used in the study to model how individuals update their beliefs based on new evidence. In the context of trust, the agents use Bayesian learning to assess an institution's trustworthiness. They start with an initial belief and then adjust it based on their experiences, observations from peers, and other available information. This process allows the agents to form more accurate trust assessments over time. The model assumes 'myopic rationality,' meaning the agents make decisions based on immediate gains without considering long-term consequences.

What are the two communication models explored in the research, and how do they differ?

The research explores two distinct communication models to understand how different forms of social interaction influence trust dynamics. The first model is "Observable Rewards," where agents openly share their experiences, whether positive or negative, with the institution. The second model is "Observable Actions," where agents only witness each other's actions, such as whether they choose to trust or not, without sharing the details of their experiences. These models allow for a comparative analysis of how sharing experiences versus simply observing actions impacts trust.

How does communication impact trust assessments and long-term trust in the context of the study?

Communication, in general, strengthens the accuracy of trust assessments. When two agents exchange information, they are more likely to correctly discern an institution's trustworthiness than a single agent. Moreover, communication plays a crucial role in fostering long-term trust. If an institution is genuinely trustworthy, communication helps build and maintain trust over time. Conversely, when an institution is not trustworthy, communication allows for timely exits, preventing agents from sustaining losses or negative experiences.

How does the study's approach help us understand trust in today's interconnected world, particularly considering events like the COVID-19 pandemic?

The study's approach, by examining how social circles influence trust in institutions, provides valuable insights into the dynamics of trust in our interconnected world. The COVID-19 pandemic highlighted the critical role of trust in various aspects of life, from vaccination rates to adherence to public health guidelines. By analyzing communication models and the impact of shared experiences versus mere observation, the study helps us understand how individuals form and maintain trust in complex scenarios. This knowledge is crucial for navigating the challenges of information overload and social influence, allowing us to make more informed decisions about whom and what to trust.