Towards modeling the economies of personal relationships in dyadic business exchanges

Abstract

This paper proposes modeling the economies of personal relationship so that its impact on the collective economic outcome in dyadic business exchanges can be measured. Firstly, this paper introduces personal relationship in business environment. Secondly, some of the parameters that are related to the issue of personal relationship are presented. Thirdly, a hybrid approach is proposed for developing a mathematical model; with the mathematical model, a better understanding of the impact of personal relationship on switching business exchange relationship and the costs involved (switching costs) can be understood and experimented with.