IDEAS home Printed from https://ideas.repec.org/p/esi/discus/2002-07.html
   My bibliography  Save this paper

The Coevolution of Trust and Institutions in Anonymous and Non-anonymous Communities

Author

Listed:
  • Werner Güth
  • Axel Ockenfels

Abstract

We report on a research program that employs the indirect evolutionary approach to analyze how the institutional environment drives the evolution of trust and trustworthiness through the evolution of moral preferences, and how in turn the evolution of preferences shapes the evolution of the rules of the game. In particular, we describe how the ability to detect trustworthiness in non-anonymous communities supports the evolution of trust and thus crowds out legal institutions. If anonymous interaction prevents type detection, legal institutions such as courts and legal insurance may play a decisive role for the emergence of trust.

Suggested Citation

  • Werner Güth & Axel Ockenfels, 2002. "The Coevolution of Trust and Institutions in Anonymous and Non-anonymous Communities," Papers on Strategic Interaction 2002-07, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2002-07
    as

    Download full text from publisher

    File URL: ftp://papers.econ.mpg.de/esi/discussionpapers/2002-07.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Werner Gueth & Axel Ockenfels, 2000. "Evolutionary Norm Enforcement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(2), pages 335-335, June.
    2. Güth, Werner & Ockenfels, Axel, 2005. "The coevolution of morality and legal institutions: an indirect evolutionary approach," Journal of Institutional Economics, Cambridge University Press, vol. 1(2), pages 155-174, December.
    3. Brosig, Jeannette, 2002. "Identifying cooperative behavior: some experimental results in a prisoner's dilemma game," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 275-290, March.
    4. Selten, Reinhard, 1983. "Evolutionary stability in extensive two-person games," Mathematical Social Sciences, Elsevier, vol. 5(3), pages 269-363, September.
    5. Axel Ockenfels, 2002. "Reputationsmechanismen auf Internet-Marktplattformen - Theorie und Empirie -," Papers on Strategic Interaction 2002-46, Max Planck Institute of Economics, Strategic Interaction Group.
    6. Selten, Reinhard, 1988. "Evolutionary stability in extensive two-person games - correction and further development," Mathematical Social Sciences, Elsevier, vol. 16(3), pages 223-266, December.
    7. Max Albert & Erich Kirchler & Werner G³th & Boris Maciejovsky, 2001. "Exploring Behavior: An Ultimatum Experiment," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 353-375.
    8. Ockenfels, Axel & Selten, Reinhard, 2000. "An Experiment on the Hypothesis of Involuntary Truth-Signalling in Bargaining," Games and Economic Behavior, Elsevier, vol. 33(1), pages 90-116, October.
    9. Axel Ockenfels, 2002. "New Institutional Structures on the Internet: The Economic Design of Online Auctions," Papers on Strategic Interaction 2002-08, Max Planck Institute of Economics, Strategic Interaction Group.
    10. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 63-80.
    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. Friederike Mengel & Axel Ockenfels & Werner Güth, 2006. "The Dynamics of Trust and Trustworthiness on EBay. An Evolutionary Analysis of Buyer Insurance and Seller Reputation," Papers on Strategic Interaction 2006-03, Max Planck Institute of Economics, Strategic Interaction Group.
    2. Güth, Werner & Ockenfels, Axel, 2005. "The coevolution of morality and legal institutions: an indirect evolutionary approach," Journal of Institutional Economics, Cambridge University Press, vol. 1(2), pages 155-174, December.
    3. Werner Raub, 2004. "Hostage Posting as a Mechanism of Trust," Rationality and Society, , vol. 16(3), pages 319-365, August.
    4. Axel Ockenfels, 2002. "New Institutional Structures on the Internet: The Economic Design of Online Auctions," Papers on Strategic Interaction 2002-08, Max Planck Institute of Economics, Strategic Interaction Group.
    5. Werner Güth & Anthony ZIEGELMEYER & Loreto LLORENTE ERVITI, 2004. "Quantity Competition under Asymmetric Information without Common Priors: An Indirect Evolutionary Approach," Papers on Strategic Interaction 2003-32, Max Planck Institute of Economics, Strategic Interaction Group.
    6. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, May.
    7. Marian Panganiban, 2015. "To friends everything, to strangers the law? An experiment on contract enforcement and group identity," Jena Economics Research Papers 2015-015, Friedrich-Schiller-University Jena.

    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. Güth, Werner & Ockenfels, Axel, 2005. "The coevolution of morality and legal institutions: an indirect evolutionary approach," Journal of Institutional Economics, Cambridge University Press, vol. 1(2), pages 155-174, December.
    2. Axel Ockenfels, 2009. "Marktdesign und Experimentelle Wirtschaftsforschung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(s1), pages 31-53, May.
    3. Güth, Werner & Kliemt, Hartmut, 2001. "Langzeiteffekte der Theory of Games and Economic Behavior: Zur Anwendung der Spieltheorie in den (Sozial-)wissenschaften," SFB 373 Discussion Papers 2001,8, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    4. Friederike Mengel & Axel Ockenfels & Werner Güth, 2006. "The Dynamics of Trust and Trustworthiness on EBay. An Evolutionary Analysis of Buyer Insurance and Seller Reputation," Papers on Strategic Interaction 2006-03, Max Planck Institute of Economics, Strategic Interaction Group.
    5. Axel Ockenfels, 2002. "New Institutional Structures on the Internet: The Economic Design of Online Auctions," Papers on Strategic Interaction 2002-08, Max Planck Institute of Economics, Strategic Interaction Group.
    6. Axel Ockenfels, 2002. "Reputationsmechanismen auf Internet-Marktplattformen - Theorie und Empirie -," Papers on Strategic Interaction 2002-46, Max Planck Institute of Economics, Strategic Interaction Group.
    7. Leeson, Peter T., 2005. "Endogenizing fractionalization," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 75-98, June.
    8. Bhaskar V., 1996. "On the neutral stability of mixed strategies in asymmetric contests," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 56-57, February.
    9. Jörg Rieskamp & Peter Todd, 2006. "The Evolution of Cooperative Strategies for Asymmetric Social Interactions," Theory and Decision, Springer, vol. 60(1), pages 69-111, February.
    10. Werner Güth & Hartmut Kliemt, 1998. "The Indirect Evolutionary Approach:," Rationality and Society, , vol. 10(3), pages 377-399, August.
    11. Holm, Håkan, 2004. "Detection Biases in Bluffing - Theory and Experiments," Working Papers 2004:30, Lund University, Department of Economics, revised 19 Jan 2005.
    12. von Wangenheim, Georg & Müller, Stephan, 2014. "Evolution of cooperation in social dilemmas: signaling internalized norms," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100340, Verein für Socialpolitik / German Economic Association.
    13. Werner Gueth & Axel Ockenfels, 2000. "Evolutionary Norm Enforcement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(2), pages 335-335, June.
    14. Guth, Werner & Kliemt, Hartmut, 2004. "Evolutionary parallelism versus co-evolution: a comment on Joseph Henrich," Journal of Economic Behavior & Organization, Elsevier, vol. 53(1), pages 75-79, January.
    15. Werner Güth & Friederike Mengel & Axel Ockenfels, 2007. "An Evolutionary Analysis of Buyer Insurance and Seller Reputation in Online Markets," Theory and Decision, Springer, vol. 63(3), pages 265-282, November.
    16. Maria Vittoria Levati, "undated". "Explaining Private Provision of Public Goods by Conditional Cooperation - An Evoltuionary Approach -," Papers on Strategic Interaction 2002-44, Max Planck Institute of Economics, Strategic Interaction Group.
    17. Hernández, José & Guerrero-Luchtenberg, César, 2016. "Social capital, perceptions and economic performance," MPRA Paper 71006, University Library of Munich, Germany.
    18. Jingnan (Cecilia) Chen & Daniel Houser, 2013. "Promises and Lies: An Experiment on Detecting Deception," Working Papers 1038, George Mason University, Interdisciplinary Center for Economic Science, revised Feb 2013.
    19. Chun-Lei Yang & Ching-Syang Jack Yue & I-Tang Yu, 2007. "The rise of cooperation in correlated matching prisoners dilemma: An experiment," Experimental Economics, Springer;Economic Science Association, vol. 10(1), pages 3-20, March.
    20. Bhaskar, V., 1995. "On te generic stability of mixed strategies in asymmetric contests," Other publications TiSEM 7805032a-e121-408b-8c26-a, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    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:esi:discus:2002-07. 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: Karin Richter (email available below). General contact details of provider: https://edirc.repec.org/data/mpiewde.html .

    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.