How Much Should an Investor Trust the Startup Entrepreneur ?-A Network Model

  title={How Much Should an Investor Trust the Startup Entrepreneur ?-A Network Model},
  author={Anna Klabunde},
Trust is an important determinant of start-up fi nancing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of social distance and is the precondition for investment. Trust increases and decreases based on whether an investor is satisfi ed with the interest payments received from an entrepreneur. If an investor is… CONTINUE READING
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