NSF Org:	SES Division of Social and Economic Sciences
Recipient:	THE LELAND STANFORD JUNIOR UNIVERSITY
Initial Amendment Date:	March 16, 2005
Latest Amendment Date:	March 10, 2006
Award Number:	0503156
Award Instrument:	Standard Grant
Program Manager:	paul ciccantell SES  Division of Social and Economic Sciences SBE  Directorate for Social, Behavioral and Economic Sciences
Start Date:	March 15, 2005
End Date:	February 28, 2007 (Estimated)
Total Intended Award Amount:	$0.00
Total Awarded Amount to Date:	$7,471.00
Funds Obligated to Date:	FY 2005 = $7,471.00
History of Investigator:	Karen Cook (Principal Investigator) kcook@stanford.edu
Recipient Sponsored Research Office:	Stanford University 450 JANE STANFORD WAY STANFORD CA  US  94305-2004 (650)723-2300
Sponsor Congressional District:	16
Primary Place of Performance:	Stanford University 450 JANE STANFORD WAY STANFORD CA  US  94305-2004
Primary Place of Performance Congressional District:	16
Unique Entity Identifier (UEI):	HJD6G4D6TJY5
Parent UEI:
NSF Program(s):	Sociology
Primary Program Source:	app-0105
Program Reference Code(s):	9178, SMET
Program Element Code(s):	133100
Award Agency Code:	4900
Fund Agency Code:	4900
Assistance Listing Number(s):	47.075

ABSTRACT

Social scientists have observed that individuals often repeatedly choose to interact with the same partners even at some cost; this behavior is known to sociologists as commitment formation. The source of commitment formation has been debated among the many disciplines of the social sciences. In large part, the research has been primarily concerned with behavioral commitment, described as individuals repeatedly interacting with the same partner. Although, the rational choice perspective would indicate behavioral commitments should not form, unless there are high search costs, experimental and field studies indicate that behavioral commitment happens much more frequently than the rational choice perspective would predict. Recent work has pointed to uncertainty reduction as one of the key reasons why individuals form behavioral commitments, but does not pose a mechanism by which this occurs. By elaborating on the role of attributions (what individuals perceive as the cause of another individual's behavior), I explore a cognitive mechanism by which actors reduce uncertainty and commitments form.
I develop a theoretical argument that specifies how actors form commitments in response to different levels of uncertainty inherent in different types of exchange. I argue that the level of uncertainty and the behavior of a partner condition the attribution of the cause of the partner's behavior, which in turn has a direct impact on the level of trustworthiness the actor perceives in her partner. This level of perceived trustworthiness directly affects the level and type of behavioral commitment formed. Specifically, this dissertation tests four hypotheses: 1) type of exchange and partner behavior condition the attribution made 2) the attribution and the behavior of the partner affect the perceived level of trustworthiness 3) the normative nature of the behavior directly affects the type and level of commitment (measured as repeat exchange) and 4) the perceived level of trustworthiness directly affects the level of commitment (measured as investment in a new type of exchange).
I will test these four predictions in an experimental setting. Approximately 150 subjects will be recruited to participate in one of five conditions. Subjects will make decisions using a computerized exchange program that is being developed specifically for this research at Stanford University. Behavioral measures of commitment will be collected during each exchange. Attitudinal measures (including attributions, perceptions of trustworthiness, and uncertainty) will be measured at three time points through out the experiment.
The intellectual merit of this dissertation project is that it extends current theories and research on commitment formation, uncertainty reduction and trustworthiness in multiple types of exchange settings (binding negotiated, non-binding negotiated and reciprocal exchange). Through this research we can gain an understanding of the micro processes specifying how exchange relationships go from being distant, arm's-length ties, characterized by contracts, distrust, high uncertainty and risk, to embedded relationships, characterized by trust, extensive repeat exchanges in a variety of settings with reduced uncertainty. Currently a majority of the work on embedded relationships (the concept that economic transactions are situated in social relationships) focuses on the implications of embeddedness, rarely addressing how these relationships actually emerge. Considering the importance of embeddedness in the day-to-day functioning of organizations and the economy it is critical to understand how these relationships form and how they are maintained. Such an understanding may have a significant impact on how scholars investigate organizational relationships (especially long-term partnerships, joint ventures and other collaborative tasks) as well as how practitioners advise organizations and individuals on how to maintain and improve relationships both within their organizations (such as employee loyalty, and cohesion) and with other organizations

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