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Social identity and trust - An experimental investigation

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  • Werner Güth
  • M. Vittoria Levati
  • Matteo Ploner

Abstract

We experimentally examine how group identity affects trust behavior in an investment game. In one treatment, group identity is induced purely by minimal groups. In other treatments, group members are additionally related by outcome interdependence established in a prior public goods game. Moving from the standard investment game (where no group identity is prompted) to minimal group identity to two-dimensional group identity, we find no significant differences in trust decisions. However, trust is significantly and positively correlated with contribution decisions, suggesting that "social" trust is behaviorally important.

Suggested Citation

  • Werner Güth & M. Vittoria Levati & Matteo Ploner, 2007. "Social identity and trust - An experimental investigation," Papers on Strategic Interaction 2006-41, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2006-41
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    References listed on IDEAS

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    Cited by:

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    2. Klaus Abbink & Donna Harris, 2019. "In-group favouritism and out-group discrimination in naturally occurring groups," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-13, September.
    3. Marin Paunov, 2019. "Social Trust as an Infrastructural Element of Cultures," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(2), pages 1-3.
    4. Martin Kolmar & Andreas Wagener, 2019. "Group Identities in Conflicts," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 36(3), pages 165-192, December.
    5. Donna Harris & Benedikt Herrmann & Andreas Kontoleon & Jonathan Newton, 2015. "Is it a norm to favour your own group?," Experimental Economics, Springer;Economic Science Association, vol. 18(3), pages 491-521, September.
    6. Donna Harris & Benedikt Herrmann & Andreas Kontoleon, 2012. "When to Favour Your Own group? The Threats of Costly Punishments and In-group Favouritism," Economics Series Working Papers 628, University of Oxford, Department of Economics.
    7. Lenz, Lisa & Mittlaender, Sergio, 2022. "The effect of intergroup contact on discrimination," Journal of Economic Psychology, Elsevier, vol. 89(C).
    8. Fernando Aguiar & Pablo Branas-Garza & Maria Paz Espinosa & Luis Miller, 2010. "Personal identity: a theoretical and experimental analysis," Journal of Economic Methodology, Taylor & Francis Journals, vol. 17(3), pages 261-275.
    9. John Smith, 2012. "Reputation, Social Identity and Social Conflict," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 677-709, August.
    10. John Smith & Katerina Bezrukova, 2008. "Towards an Understanding of the Endogenous Nature of Identity in Games," Departmental Working Papers 200806, Rutgers University, Department of Economics.
    11. Bonein, Aurélie & Serra, Daniel, 2009. "Gender pairing bias in trustworthiness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 779-789, October.
    12. M. Niaz Asadullah, 2017. "Who Trusts Others? Community and Individual Determinants of Social Capital in a Low-Income Country," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(2), pages 515-544.
    13. Abdoulaye Diop & Yaojun Li & Majed Mohammmed H. A. Al-Ansari & Kien T. Le, 2017. "Social Capital and Citizens’ Attitudes towards Migrant Workers," Social Inclusion, Cogitatio Press, vol. 5(1), pages 66-79.
    14. Luo, Jun & Wang, Xinxin, 2020. "Hukou identity and trust—Evidence from a framed field experiment in China," China Economic Review, Elsevier, vol. 59(C).
    15. Morone, Andrea & Sandri, Serena & Fiore, Annamaria, 2009. "On the absorbability of informational cascades in the laboratory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 728-738, October.
    16. Anna-Maria Kanzola & Panagiotis E. Petrakis, 2021. "Τhe Sustainability of Creativity," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    17. Avner Ben-Ner & Matthew Ellman, 2013. "The contributions of behavioural economics to understanding and advancing the sustainability of worker cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 75-100, August.
    18. Güth, Werner & Ploner, Matteo & Regner, Tobias, 2009. "Determinants of in-group bias: Is group affiliation mediated by guilt-aversion?," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 814-827, October.
    19. Butler Jeffrey V., 2014. "Trust, Truth, Status and Identity: An Experimental Inquiry," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 293-338, February.
    20. John Smith, 2012. "The endogenous nature of the measurement of social preferences," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 11(2), pages 235-256, December.
    21. Ben-Ner, Avner, 2013. "Preferences and organization structure: Toward behavioral economics micro-foundations of organizational analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 87-96.
    22. Cochard, François & Flage, Alexandre & Peterle, Emmanuel, 2019. "Intermediation and discrimination in an investment game: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 196-208.
    23. Amelie Aidenberger & Heiko Rauhut & Jörg Rössel, 2020. "Is participation in high-status culture a signal of trustworthiness?," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-23, May.
    24. Jasmina Arifovic & Giuseppe Danese, 2018. "Homophily and Social Norms in Experimental Network Formation Games," Games, MDPI, vol. 9(4), pages 1-22, October.

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    More about this item

    Keywords

    Experiment; Investment game; Trust; Group identity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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