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Trust, vulnerability and trustworthiness

Author

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  • Keser, Claudia
  • Özgümüs, Asri

Abstract

In the investment game by Berg et al. (1995), we extend the trustee’s action space by the opportunity to take money from the trustor, in addition to the amount received. Experimental findings indicate that this significantly reduces the trustors’ investment. While the trustees’ average payback relative to the amount received remains unaffected, we observe an important decrease in the relative frequency of zero returns. Furthermore, we do not observe a single incidence of money being taken from the trustor. We explain this result by intention-based social preferences.

Suggested Citation

  • Keser, Claudia & Özgümüs, Asri, 2018. "Trust, vulnerability and trustworthiness," Economics Letters, Elsevier, vol. 163(C), pages 149-151.
    • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:149-151
    DOI: 10.1016/j.econlet.2017.12.012
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    References listed on IDEAS

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    1. John A. List, 2007. "On the Interpretation of Giving in Dictator Games," Journal of Political Economy, University of Chicago Press, vol. 115(3), pages 482-493.
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    More about this item

    Keywords

    Trust game; Experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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