Business & Management Studies

Abstract

This paper explores the concept and implication of trust from both economic and emotional perspectives, emphasizing its critical roles in personal and business relationships. Trust facilitates information sharing, and fostering long-term commitment. As the level of trust increases, transaction costs decrease, leading to economic rewards and stronger, sustainable relationships between participating partners. Breakdown of trust results in emotional pain as well as economic loss. This short essay also discusses the impact of emerging technologies, particularly artificial intelligence (AI), on interpersonal trust. From a neuroscientific viewpoint, it explains how trust enhances personal joy and satisfaction. Through theoretical and empirical evidence, we are hoping that this study illustrates the pivotal role of trust in shaping our lives.