IDEAS home Printed from https://ideas.repec.org/a/eee/chsofr/v175y2023ip1s0960077923009323.html
   My bibliography  Save this article

N-player repeated evolutionary trust game under government management

Author

Listed:
  • Liu, Yuyuan
  • Liu, Linjie
  • Guo, Ruqiang
  • Zhang, Liang

Abstract

Trust game is a common framework for studying trust behavior between unrelated individuals. Previous theoretical research has found that network structure or reputation can promote trust and cooperation, but these studies often assume that interactions between players are one-time and investors have no choice but to invest, which is inconsistent with reality. Here we introduce the conditional investment strategy and government management into a repeated N-player trust game, where investors can make investment decisions based on the investment environment and the government plays the role of a regulator. We consider a reporting mechanism to allow investors to report untrustworthy trustees, thereby the government punishes reported untrustworthy trustees and rewards investors who successfully report untrustworthy trustees. We find that the introduction of the conditional investment strategy and incentives can prompt the evolution of trust. Besides, we reveal that as punishment intensity increases, not only can trust emerge but investment behavior can also be maintained. Furthermore, we verify the above theoretical results by numerical simulations.

Suggested Citation

  • Liu, Yuyuan & Liu, Linjie & Guo, Ruqiang & Zhang, Liang, 2023. "N-player repeated evolutionary trust game under government management," Chaos, Solitons & Fractals, Elsevier, vol. 175(P1).
    • Handle: RePEc:eee:chsofr:v:175:y:2023:i:p1:s0960077923009323
    DOI: 10.1016/j.chaos.2023.114031
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960077923009323
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chaos.2023.114031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Giangiacomo Bravo & Lucia Tamburino, 2008. "The Evolution of Trust in Non-Simultaneous Exchange Situations," Rationality and Society, , vol. 20(1), pages 85-113, February.
    2. Growiec, Katarzyna & Growiec, Jakub, 2014. "Social Capital, Trust, And Multiple Equilibria In Economic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 18(2), pages 282-315, March.
    3. Xing Fang & Xiaojie Chen, 2021. "Evolutionary dynamics of trust in the N-player trust game with individual reward and punishment," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 94(9), pages 1-7, September.
    4. Szolnoki, Attila & Chen, Xiaojie, 2020. "Gradual learning supports cooperation in spatial prisoner’s dilemma game," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
    5. Hawlitschek, Florian & Teubner, Timm & Weinhardt, Christof, 2016. "Trust in the Sharing Economy," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(1), pages 26-44.
    6. Engle-Warnick, Jim & Slonim, Robert L., 2004. "The evolution of strategies in a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 553-573, December.
    7. repec:eme:mrn000:01409170410784257 is not listed on IDEAS
    8. Sun, Ketian & Liu, Yang & Chen, Xiaojie & Szolnoki, Attila, 2022. "Evolution of trust in a hierarchical population with punishing investors," Chaos, Solitons & Fractals, Elsevier, vol. 162(C).
    9. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Ruqiang & Liu, Linjie & Liu, Yuyuan & Zhang, Liang, 2024. "Evolution of trust in the N-player trust game with the margin system," Applied Mathematics and Computation, Elsevier, vol. 473(C).
    2. Wang, Chaoqian, 2024. "Evolution of trust in structured populations," Applied Mathematics and Computation, Elsevier, vol. 471(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Chaoqian, 2024. "Evolution of trust in structured populations," Applied Mathematics and Computation, Elsevier, vol. 471(C).
    2. Paul Rauwolf & Joanna J. Bryson, 2018. "Expectations of Fairness and Trust Co-Evolve in Environments of Partial Information," Dynamic Games and Applications, Springer, vol. 8(4), pages 891-917, December.
    3. Guo, Ruqiang & Liu, Linjie & Liu, Yuyuan & Zhang, Liang, 2024. "Evolution of trust in the N-player trust game with the margin system," Applied Mathematics and Computation, Elsevier, vol. 473(C).
    4. Guo, Ruqiang & Liu, Linjie & Liu, Yuyuan & Zhang, Liang, 2023. "Evolution of trust in a hierarchical population with different investors based on investment behavioral theory," Chaos, Solitons & Fractals, Elsevier, vol. 176(C).
    5. Zhou, Chen & Zhu, Yuying & Zhao, Dawei & Xia, Chengyi, 2024. "An evolutionary trust game model with group reputation within the asymmetric population," Chaos, Solitons & Fractals, Elsevier, vol. 184(C).
    6. Bellemare, Charles & Kroger, Sabine, 2007. "On representative social capital," European Economic Review, Elsevier, vol. 51(1), pages 183-202, January.
    7. repec:tiu:tiucen:200457 is not listed on IDEAS
    8. Servátka, Maroš & Tucker, Steven & Vadovič, Radovan, 2011. "Words speak louder than money," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 700-709.
    9. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2005. "An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior," Working Papers 14, Department of Economics, College of William and Mary.
    10. Kartal, Melis & Müller, Wieland & Tremewan, James, 2021. "Building trust: The costs and benefits of gradualism," Games and Economic Behavior, Elsevier, vol. 130(C), pages 258-275.
    11. Sofianos, Andis, 2022. "Self-reported & revealed trust: Experimental evidence," Journal of Economic Psychology, Elsevier, vol. 88(C).
    12. Greiner, Ben & Ockenfels, Axel & Werner, Peter, 2012. "The dynamic interplay of inequality and trust—An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 355-365.
    13. Ashraf, Nava & Bohnet, Iris & Piankov, Nikita, 2003. "Is Trust a Bad Investment?," Working Paper Series rwp03-047, Harvard University, John F. Kennedy School of Government.
    14. James Andreoni, 2005. "Trust, Reciprocity, and Contract Enforcement: Experiments on Satisfaction Guaranteed," Levine's Bibliography 666156000000000679, UCLA Department of Economics.
    15. Delavande, Adeline & Zafar, Basit, 2015. "Stereotypes and Madrassas: Experimental evidence from Pakistan," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 247-267.
    16. Johnsen, Åshild A. & Kvaløy, Ola, 2016. "Does strategic kindness crowd out prosocial behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 1-11.
    17. Sloof, Randolph & Sonnemans, Joep, 2011. "The interaction between explicit and relational incentives: An experiment," Games and Economic Behavior, Elsevier, vol. 73(2), pages 573-594.
    18. Naoki Masuda & Mitsuhiro Nakamura, 2012. "Coevolution of Trustful Buyers and Cooperative Sellers in the Trust Game," PLOS ONE, Public Library of Science, vol. 7(9), pages 1-11, September.
    19. Obayashi Shinya & Inagaki Yusuke & Takikawa Hiroki, 2016. "The Condition for Generous Trust," PLOS ONE, Public Library of Science, vol. 11(11), pages 1-16, November.
    20. James Andreoni, 2018. "Satisfaction Guaranteed: When Moral Hazard Meets Moral Preferences," American Economic Journal: Microeconomics, American Economic Association, vol. 10(4), pages 159-189, November.
    21. repec:cup:judgdm:v:17:y:2022:i:5:p:1123-1145 is not listed on IDEAS
    22. repec:dgr:kubcen:200347 is not listed on IDEAS
    23. C. E. Jager, 2017. "A Question of Trust: the Pursuit of Consumer Trust in the Financial Sector by Means of EU Legislation," Journal of Consumer Policy, Springer, vol. 40(1), pages 25-49, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chsofr:v:175:y:2023:i:p1:s0960077923009323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thayer, Thomas R. (email available below). General contact details of provider: https://www.journals.elsevier.com/chaos-solitons-and-fractals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.