1 / 12

Analysing the Relationship between Risk and Trust

Analysing the Relationship between Risk and Trust. By Audun Jøsang and Stéphzne Lo Presti. Roadmap. Risk-Trust in Literature Measuring Risk-Trust Decision via Risk Balancing Trust and Risk Conclusion. Risk-Trust in Literature. subjectivity. uncertainty. Concept of Trust

gen
Download Presentation

Analysing the Relationship between Risk and Trust

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Analysing the Relationship between Risk and Trust By AudunJøsang and Stéphzne Lo Presti

  2. Roadmap • Risk-Trust in Literature • Measuring Risk-Trust • Decision via Risk • Balancing Trust and Risk • Conclusion

  3. Risk-Trust in Literature subjectivity uncertainty • Concept of Trust • Trust is the extent to which one party is willing to depend on somebody, or something, in a given situation with a feeling of relative security, even though negative consequences are possible. • Concept of Risk • Anticipated hazard, measurable • Trust vs. Risk • Both difficult to scale • Both upon uncertainty and unpredictability • Relationship between them (antecedent, alternative, outcome)? risk

  4. Risk-Trust in Literature • A risk-trust model by fuzzy logic [Manchala1998] • (trans_history, cost) -> trust

  5. Measuring Risk-Trust : Decision via Risk • Expected Utility (EU) • : non-linear utility function of monetary value • : risk averse • : risk seeking • : risk-neutral • Expected Monetary Value (EV) • : the monetary investment/bet • : the probability of the th outcome • : the gain factor of the outcome, given • Risk-Neutral Case () Expected Gain

  6. Measuring Risk-Trust : Decision via Risk • For Decision • : probability of successful transaction • : gain factor to a successful transaction • : loss factor to a failed transaction

  7. Measuring Risk-Trust : Decision via Risk • For Decision • : the total capital • : fraction of the total capital • varies in the same direction of and • E.g. • : factor moderating the influence of , or risk attitude • Low – risk-taking; high – risk-aversion;

  8. Measuring Risk-Trust : Balancing Trust- Risk • “The outcome of the transaction depends on somebody or something and that the relying party is uncertain about the outcome of the transaction.” • Paraphrase : the reliability of for producing a successful outcome • Reliability Trust: the trusting party’s probability estimate of success of the transaction

  9. Measuring Risk-Trust : Balancing Trust - Risk • Decision Trust • to normalize different between ’s reliability and the cut-off probability on an agent’s decision surface (risk attitude), given (1) risk attitude defined by a decision surface, and (2) transaction outcome upon and • : decision surface • : probability producing a successful outcome, given and • : cut-off probability on for the same and

  10. Measuring Risk-Trust : Balancing Trust - Risk • Decision Trust • (0,-1), (,0), and (1,1) • Decision trust depended on a distance between and • , trusting for the transaction • , undecided • , not trusting

  11. Conclusion Summary Shortcomings: Success of an operation is more complex than reliability of Behavior modelling • To derive a computational model for risk-trust • Reliability trust: probability of success of the transaction • Decision trust: considering risk attitude, complete the notion of trust

  12. Thank You

More Related