Computational Institutions: an Analysis of Trust

In this paper, after introducing the notion of an computational institution, and providing a formal characterisation of it, we shall propose an analysis of the connection between trust and institutions. This will allow us to distinguish two aspects of trust: institutional trust and intrainstitutional trust. By institutional trust we mean trust of the individual members of the institution toward the institution itself. The basic idea is that institutional trust is determined by trust in the component elements of the institution, according to the function they play in the working of the institution itself. By interinstitutional trust we mean trust which the members of the institutions have one toward another. The idea is that this trust is to a certain extent determined by trust in the institution itself, namely by institutional trust.