Credit (Time, Trust, Money): How Can We Calculate Trust?

Credit (Time, Trust, Money): How Can We Calculate Trust?

Credit as a Layered Concept

Credit can be viewed as a layered structure:

• Time as the upper concept
• Trust as the middle concept
• Money as the lower concept

Time and Money are easily measurable because they can be expressed numerically. But what about Trust? How can we measure it?

I suggest two complementary approaches.

Trust Levels

Trust, as a form of credit, can be classified into five levels:

1. Fragile Trust (0–20)
   Trust that is easily swayed by rumors or short-term news. In markets, it amplifies volatility.
2. Conditional Trust (21–40)
   Trust that exists only under certain conditions. Strongly dependent on indicators or external factors, it fluctuates in an event-driven manner.
3. Functional Trust (41–60)
   The standard level of trust in normal times. It underpins stable transactions and cooperation, such as trust in central banks or currency systems.
4. Resilient Trust (61–80)
   Trust that does not collapse from a single shock and can be restored with time or compensation.
5. Fundamental Trust (81–100)
   Root-level trust that is almost unquestionable.

Method 1: Differentiating Time

One way to measure trust is by differentiating Time.

When the amount of time others spend on us increases or decreases, the trust they have toward us also increases or decreases. Since Time is the upper concept of Trust, differentiating Time gives Trust.

• Formula for Time:
  y=ax
  where y = total Time, a = number of others, x = spending Time.
• Formula for Trust:
  y=a
  where y = total Trust, a = number of others.

If the number of others (a) is zero, then Trust is also zero.

Method 2: Integrating Money

Another way is by integrating Money.

When the amount of money others spend on us increases or decreases, their trust also changes accordingly. Since Money is the lower concept of Trust, integrating Money gives Trust.

• Formula for Money:
  y=ax
  where y = total Money, a = number of others, x = spending Money.
• Formula for Trust:
  y=(1a/2) x^2
  where y = total Trust, a = number of others, x = Trust given by one person.

If total Money (y) is zero, then Trust is also zero.

Practical Implication: Avoid Low-Trust Negotiations

If the opponent’s trust level is low, negotiation should not be attempted. This is straightforward.

When trust is within Fragile Trust (0–20), negotiation is counterproductive and should be avoided.

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