Abstract:

In this paper we discuss the nature of trust in the business world and show how agent based modelling may be used to model its dynamics. In particular we study the interactions between financial planners and their clients. Trust enables planners to retain clients for longer and to gain other clients by reference. But it may also impose constraints in the commissions and other fees the planner might obtain. Thus there is a balance, which depends not just on the dyadic interaction between planner and client, but also on the flow of information amongst clients, planners and other information resources. We contend that computer simulation, coupled with data mining, gives us deeper insight into the management of financial advise.