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Trust, Information Acquisition and Financial Decisions: A Field Experiment

Author

Listed:
  • Sonia Di Giannatale

    (Associate Professor of Economics, Department of Economics, CIDE (Center for Economics Research and Teaching). Mexico City.)

  • Alexander Elbittar

    (Associate Professor of Economics, Department of Economics, CIDE (Center for Economics Research and Teaching). Mexico City.)

  • Patricia López-Rodríguez

    (Professor, Department of Economics, Universidad Iberoamericana. Mexico City.)

  • María-José Roa-García

    (Researcher, Economic Research Department, CEMLA (Center for Latin American Monetary Studies). Mexico City.)

Abstract

We study the relationship between information acquisition and trust in financial decision making. A field experiment with a variation of the trust game was conducted with the partners of a financial cooperative located in a Mexican rural area. Individuals who frequently visit friends are more trustful, those who visit their families regularly reciprocate less, and active cooperative partners reciprocate more. Individuals show interest in acquiring information on the financial status and participation in social networks of other people with whom they may establish financial transactions. However, information does not appear to affect transfers; trust seems to overshadow information acquisition in financial decision making.

Suggested Citation

  • Sonia Di Giannatale & Alexander Elbittar & Patricia López-Rodríguez & María-José Roa-García, 2013. "Trust, Information Acquisition and Financial Decisions: A Field Experiment," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 375-401, July-Dece.
    • Handle: RePEc:emc:ecomex:v:22:y:2013:i:2:p:375-401
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    social networks; information; social preferences; field experiments; trust; reciprocity; financial development.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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