Rido Thath: Trust, either interpersonal or trust in institutions, plays an important role in economic growth, the well-being of society, and the government (OECD 2017). Public trust is widely considered one of the basic elements for the well-functioning of institutions including the government, market, business, and society (OECD 2019). According to the Nobel Laureate Kenneth Arrow, every transaction in principle contains an element of trust, and it can be argued that much of the backwardness in the world can be explained by the absence of mutual confidence (Arrow 1972).
In the banking industry in general, for example, collateral is required, and credit scores need to be verified before borrowers can obtain the credit, while in the rental housing industry, a deposit is compulsory in many countries, including China. This practice increases the transaction cost and may exclude potential consumers. In this paper, the authors aim to examine...