General Model for the Creation of Social Capital Based on Non-cooperative Game Theory

This article analyzes social capital in Colombia and how to create it in distrustful societies using game theory. Networking generation and trustful environments are intimately related to development, lowering transactional costs and helping societies to create better interchange processes under regulated institutions. However, there are societies, such as the Colombian one, where building trust is difficult due to the country’s history, conflict, and dubious contract bargains. In Colombia and some Latin American countries, most negotiations rely on the assumption that the counterparty wants a tremendous advantage or has an obscure desire when doing business. Still, it is possible to generate confidence through non-cooperative games, in which prior cooperation or trust between market players is unnecessary. The proposed model in this article shows how two agents who do not cooperate and do not have confidence in a competitive environment get higher earnings in the medium and long term in private contractual relationships if they consider their goodwill as a critical variable in their profits calculation and choose the agreement performance strategy.