Is Trust a problem in online markets?

An excess of trust may also be problematic in online markets. If consumers are not actively engaged in assessing the online products they use, for example in terms of privacy and data security, advertising content or ease of switching, they are in essence implicitly trusting the firms that supply these products.

What are the key factors in maintaining trust in markets?

Thus, sound oversight and regulation of markets and market participants, and of the stability of the financial system, are key factors in maintaining trust in markets, because they help ensure an appropriate balance of risk and returns for efficient functioning and sustainable flows between investors and consumers of capital.

Are trust and investor optimism a key component of investor confidence?

For a description of the importance of trust and investor optimism as two key components of investor confidence, see Ko (2017). Optimism relates to prospects for asset portfolio returns and variances including a temporal assessment of investment prospects based mostly on economic and business fundamentals. ← 2.

Could market-base risk erode public trust in post-crisis financial reforms?

However, should evolving risks in parts of market-base finance expose new faultiness that could have financial stability implications, it could erode public trust in the efficacy and completeness of post-crisis financial reforms.