Trust and opportunism of a dichotomy in the banking industry; Evidence from Behavioral Economics Games
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Trust and opportunism of a dichotomy in the banking industry; Evidence from Behavioral Economics Games

Document Type : Original Article

Authors
1 economics department- faculty of economics, management and administrative sciences
2 semnan University
Abstract
Trust is an important element of the banking industry, the relationship between the customer and the bank is a two-way exchange, both parties may trust each other or choose opportunistic behavior. Therefore, we are faced with a strategic game. The purpose of this article is to analyze the opportunistic and trusting behaviors between customers and banks. In this paper, a structural equation model based on the logic of behavioral economics games is presented to analyze the unique effects of trust and opportunism between legal clients and their banks. The results show that trust and opportunism affect the perceived risk by the customer. Mutual trust between the customer and the bank greatly reduces the level of risk perceived by the customer. In addition, opportunity opportunism jeopardizes the relationship and creates a high level of perceived risk. The results also show that assuming other conditions remain constant, if the bank's trust in the customer decreases by one percent, the perceived risk will increase by 28 percent, but when the customer trust in the bank decreases by one percent, the perceived risk will increase by 51 percent. The above results are consistent with the principles of behavioral economics. These results emphasize the importance of trust as a tool for creating and maintaining stability in the financial system. The findings also emphasize the importance of network trust and the role of relationship marketing in the banking industry.
Keywords

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