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The Impact of Payoff Interdependence on Trust and Trustworthiness

Author

Listed:
  • Güth Werner

    (Max Planck Institute of Economics,Jena, Germany)

  • Levati M. Vittoria

    (Max Planck Institute of Economics,Jena, Germany)

  • Ploner Matteo

    (LEM, Sant’Anna School of Advanced Studies,Pisa, Italy)

Abstract

In one-shot investment games where each player’s payoff is a convex combination of own and other’s profit, we measure trust by the amount given to the trustee and trustworthiness by the amount returned to the trustor by the trustee. Does the degree of payoff interdependence increase both trust and trustworthiness or one but not the other or neither of them? According to our experimental data, trust remains unaffected by the extent of interdependence whereas trustworthiness reacts positively to it.

Suggested Citation

  • Güth Werner & Levati M. Vittoria & Ploner Matteo, 2008. "The Impact of Payoff Interdependence on Trust and Trustworthiness," German Economic Review, De Gruyter, vol. 9(1), pages 87-95, February.
    • Handle: RePEc:bpj:germec:v:9:y:2008:i:1:p:87-95
    DOI: 10.1111/j.1468-0475.2008.00424.x
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    References listed on IDEAS

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    Cited by:

    1. Werner Guth & Sabine Kroger & Ernst Maug, 2009. "Bargaining under large risk - an experimental analysis," New Zealand Economic Papers, Taylor & Francis Journals, vol. 43(2), pages 105-129.

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    More about this item

    Keywords

    Investment game; trust; trustworthiness; payoff interdependence;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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