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Is mistrust self-fulfilling?

Author

Listed:
  • Reuben, Ernesto
  • Sapienza, Paola
  • Zingales, Luigi

Abstract

We study experimentally the effect of expectations on whether trust is repaid. Subjects respond with untrustworthy behavior if they see that little is expected of them. This suggests that guilt aversion plays an important role in the repayment of trust.

Suggested Citation

  • Reuben, Ernesto & Sapienza, Paola & Zingales, Luigi, 2009. "Is mistrust self-fulfilling?," Economics Letters, Elsevier, vol. 104(2), pages 89-91, August.
  • Handle: RePEc:eee:ecolet:v:104:y:2009:i:2:p:89-91
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    References listed on IDEAS

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    6. Reuben, Ernesto & Sapienza, Paola & Zingales, Luigi, 2009. "Is mistrust self-fulfilling?," Economics Letters, Elsevier, vol. 104(2), pages 89-91, August.
    7. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2009. "Cultural Biases in Economic Exchange?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(3), pages 1095-1131.
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    More about this item

    Keywords

    Trust Trustworthiness Reciprocity Guilt aversion;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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