Political structures and trust in markets: A comparative examination of consumer trust in 28 EU member states and the effects of consumer policy on trust

Abstract

A central tenet of the New Economic Sociology is that trust is a central factor in the sound functioning of markets. Previous research has mainly used a national-scale network approach to argue that personal relations generate trust in market relations. In contrast, this article shows, from a comparative perspective, how political structures influence consumer trust. First, using aggregate data, it shows how consumer trust in markets varies across the 28 European Union (EU) member states. Second, it uses regression models to examine the effects of varying levels of political embeddedness on consumer trust, taking consumer policy as a proxy. The results support the view that it is not only personal relations that generate trust in market relations but also political structures. This argument echoes institutional economic sociological approaches, and it adds to them a trust dimension. It furthermore encourages a more finely grained comparative analysis to better account for the effects of social macrostructures on trust.