The organization of transactions: research with the Trust and Tracing game

Sebastiaan Meijer, Gert Jan Hofstede, S. (Onno) Omta, George Beers
2008 Journal on Chain and Network Science  
This paper presents empirical results of research on the influence of social aspects on the organization of transactions in the domain of chains and networks. The research method used was a gaming simulation called the Trust and Tracing game in which participants trade commodity goods with a hidden quality attribute. Previous sessions of this gaming simulation identified a list of variables for further investigation (Meijer et al, 2006) . The use of gaming simulation as data gathering tool for
more » ... uantitative research in supply chains and networks is a proof-of-principle. This paper shows results from 27 newly conducted sessions and previously unused data from 3 older sessions. Tests confirmed the use of network and market modes of organization. Pre-existing social relations influenced the course of the action in the sessions. Being socially embedded was not beneficial for the score on the performance indicators money and points. The hypothesized reduction in measurable transaction costs when there was high trust between the participants could not be found. Further analysis revealed that participants are able to suspect cheats in a session based on other factors than tracing. Testing hypotheses with data gathered in a gaming simulation proved feasible. Experiences with the methodology used are discussed.
doi:10.3920/jcns2008.x085 fatcat:nkn2nmrer5gspkgwzrz6a5kw6y