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In Making the Most of Mess, Emery Roe emphasizes that policy messes cannot be avoided or cleaned up; they need to be managed. He shows how policymakers and other professionals can learn these necessary skills from control operators who manage large critical infrastructures such as water supplies, telecommunications systems, and electricity grids. The ways in which they prevent major accidents and failures offer models for policymakers and other professionals to manage the messes they face.

Throughout, Roe focuses on the global financial mess of 2008 and its ongoing aftermath, showing how mismanagement has allowed it to morph into other national and international messes. More effective management is still possible for this and many other policy messes but that requires better recognition of patterns and formulation of scenarios, as well as the ability to translate pattern and scenario into reliability. Developing networks of professionals who respond to messes is particularly important. Roe describes how these networks enable the avoidance of bad or worse messes, take advantage of opportunities resulting from messes, and address societal and professional challenges. In addition to finance, he draws from a wide range of case material in other policy arenas. Roe demonstrates that knowing how to manage policy messes is the best approach to preventing crises.

"Tricks and treachery are the practice of fools that have not wit enough to be honest," wrote Benjamin Franklin. This volume explores ways in which the honest establish trust and enjoy good fortune, even without policing. The central mechanism at work is reputation. To work, information about the individual's conduct must be observed, interpreted, recorded, stored, and transmitted. Different forms of "seals of approval" develop to communicate the quality of an individual's reputation to others.

The studies in this volume reveal how vast information systems like Dun & Bradstreet and TRW generate reputation and beneficial exchange, and how brand names, middlemen, and dealers give their own sort of seal of approval. One chapter describes the origins of Underwriters' Laboratories, an organization that sells its inspection services and mark of approval for product safety. Another argues that J. P. Morgan's investment banking service was in large part applying astute judgment in granting the Morgan seal of approval to firms in need of capital. Other, less formal, reputational mechanisms such as gossip, customary law, and written correspondence are also explored. Contexts range from trust among merchants in Medieval Europe, social control in small communities, and good conduct in a vast anonymous society such as our own.

Throughout these broad-ranging studies, the central theme of the volume emerges: in an open, competitive environment, honesty can recruit cleverness to assert itself and to drive out the dishonest. Contributors include Bruce Benson, Harry Chase Brearly, J. Benson De Long, Avner Greif, Benjamin Klein, Keith B. Leffler, Sally Engle Merry, Paul R. Milgrom, J. Wilson Newman, Douglass C. North, Marc Ryser, Adam Smith, Gordon Tullock, and Barry R. Weingast.

Daniel B. Klein is Assistant Professor of Economics, University of California, Irvine.

What does it mean to "trust?" What makes us feel secure enough to place our confidence—even at times our welfare—in the hands of other people? Is it possible to "trust" an institution? What exactly do people mean when they claim to "distrust" their governments? As difficult as it may be to define, trust is essential to the formation and maintenance of a civil society. In Trust and Trustworthiness political scientist Russell Hardin addresses the standard theories of trust and articulates his own new and compelling idea: that much of what we call trust can be best described as "encapsulated interest." Research into the roles of trust in our society has offered a broad range of often conflicting theories. Some theorists maintain that trust is a social virtue that cannot be reduced to strategic self-interest; others claim that trusting another person is ultimately a rational calculation based on information about that person and his or her incentives and motivations. Hardin argues that we place our trust in persons whom we believe to have strong reasons to act in our best interests. He claims that we are correct when we assume that the main incentive of those whom we trust is to maintain a relationship with us—whether it be for reasons of economic benefit or for love and friendship. Hardin articulates his theory using examples from a broad array of personal and social relationships, paying particular attention to explanations of the development of trusting relationships. He also examines trustworthiness and seeks to understand why people may behave in ways that violate their own self-interest in order to honor commitments they have made to others. The book also draws important distinctions between vernacular uses of "trust" and "trustworthiness," contrasting, for example, the type of trust (or distrust) we place in individuals with the trust we place in institutions Trust and Trustworthiness represents the culmination of important new research into the roles of trust in our society; it offers a challenging new voice in the current discourse about the origins of cooperative behavior and its consequences for social and civic life. A Volume in the Russell Sage Foundation Series on Trust

Conventional wisdom holds that trust is essential for cooperation between individuals and institutions—such as community organizations, banks, and local governments. Not necessarily so, according to editors Karen Cook, Margaret Levi, and Russell Hardin. Cooperation thrives under a variety of circum-stances. Whom Can We Trust? examines the conditions that promote or constrain trust and advances our understanding of how cooperation really works. From interpersonal and intergroup relations to large-scale organizations, Whom Can We Trust? uses empirical research to show that the need for trust and trustworthiness as prerequisites to cooperation varies widely. Part I addresses the sources of group-based trust. One chapter focuses on the assumption—versus the reality—of trust among coethnics in Uganda. Another examines the effects of social-network position on trust and trustworthiness in urban Ghana and rural Kenya. And a third demonstrates how cooperation evolves in groups where reciprocity is the social norm. Part II asks whether there is a causal relationship between institutions and feelings of trust in individuals. What does—and doesn't—promote trust between doctors and patients in a managed-care setting? How do poverty and mistrust figure into the relations between inner city residents and their local leaders? Part III reveals how institutions and networks create environments for trust and cooperation. Chapters in this section look at trust as credit-worthiness and the history of borrowing and lending in the Anglo-American commercial world; the influence of the perceived legitimacy of local courts in the Philippines on the trust relations between citizens and the government; and the key role of skepticism, not necessarily trust, in a well-developed democratic society. Whom Can We Trust? unravels the intertwined functions of trust and cooperation in diverse cultural, economic, and social settings. The book provides a bold new way of thinking about how trust develops, the real limitations of trust, and when trust may not even be necessary for forging cooperation. A Volume in the Russell Sage Foundation Series on Trust