Trust and the Sharing Economy: A New Business Model | Trusted Advisor

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[Trust & Reputation Economy](whitepaper): Trust and the Sharing Economy: A New Business Model #mVILLAGE – Trust Beyond the Sharing Economy

Success built in the Sharing Economy will probably form the foundation of broader applications of Trust data. The winner here-now has a much greater chance at longer-term success as well.

The Sharing Economy is itself a play in a much grander fundamental shift. It is a shift from an infrastructure that protects people from each other, to an infrastructure that helps people trust each other. Getting the fundamentals of trust right will make it easier to navigate a series of reinforcing positive economic waves.

Airbnb and asset rental companies are, in many ways, still working off the paradigm of scale economies, the low-hanging economic fruit of our time.

Trust metrics will offer even greater economic value down the road, when massive economic gains can be reaped by applying them to things like:
– Improving actuarial science for auto insurance companies
– Improving management control systems for corporate organizations
– Changing parole policies for sentencing guidelines in the prison system
– Altering bonding requirements for positions of responsibility
– Lowering default rates on credit cards and mortgage lending

The model:
T = (Credibility) + (Reliability) + (Intimacy)
(Self-Orientation)
Where:
T = Trustworthiness
C = Credibility: truthfulness, competence, credentials, transparency
R = Reliability: dependability, track record, integrity, predictability
I = Intimacy: others feel secure sharing information, empathetic, discreet
S = Self-Orientation: focus of attention (self vs. others), selfishness, self-absorption, self-preoccupation

To make the equation more accessible to retail audiences, I suggest restating the equation as four positively-stated variables, with less psychological jargon.
Credibility + Reliability + Familiarity + Sociability

Between these four concepts, nearly all common forms of ‘trustworthiness’ are covered.
How will people come to willingly give up information about their own personal behaviors? There are three possible answers:
– Financial
– Status
– Gamification

– by Charles H. Green – co-author of The Trusted Advisor and The Trusted Advisor Fieldbook, author of Trust-based Selling, and founder of Trusted Advisor Associates.

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