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Can You Trust the Good Guys? Trust Within and Between Groups with Different Missions

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  • Fehrler, Sebastian

    (University of Bremen)

  • Kosfeld, Michael

    (Goethe University Frankfurt)

Abstract

NGOs and other non-profit organizations attract workers who strongly identify themselves with their missions. We study whether these "good guys" are more trustworthy and how such pronounced group identities affect trust and trustworthiness within the groups and toward out-groups. We find that subjects who strongly identify themselves with a non-profit mission are more trustworthy in a minimal group setting but also harshly discriminate against out-groups when subjects are grouped by the missions they identify themselves with.

Suggested Citation

  • Fehrler, Sebastian & Kosfeld, Michael, 2013. "Can You Trust the Good Guys? Trust Within and Between Groups with Different Missions," IZA Discussion Papers 7411, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7411
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    References listed on IDEAS

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    Cited by:

    1. Eger, Steffen, 2016. "Opinion dynamics and wisdom under out-group discrimination," Mathematical Social Sciences, Elsevier, vol. 80(C), pages 97-107.
    2. Armouti-Hansen, Jesper & Cassar, Lea & Deréky, Anna & Engl, Florian, 2024. "Efficiency wages with motivated agents," Games and Economic Behavior, Elsevier, vol. 145(C), pages 66-83.
    3. Eugen Dimant, 2020. "Hate Trumps Love: The Impact of Political Polarization on Social Preferences," ECONtribute Discussion Papers Series 029, University of Bonn and University of Cologne, Germany.
    4. Fehrler, Sebastian & Przepiorka, Wojtek, 2016. "Choosing a partner for social exchange: Charitable giving as a signal of trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 157-171.
    5. Cassar, Lea & Armouti-Hansen, Jesper & Dereky, Anna & Engl, Florian, 2021. "Efficiency Wages with Motivated Agents," CEPR Discussion Papers 15723, C.E.P.R. Discussion Papers.
    6. Jesper Armouti-Hansen & Lea Cassar & Anna Deréky & Florian Engl, 2020. "Efficiency Wages with Motivated Agents," CESifo Working Paper Series 8474, CESifo.

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    More about this item

    Keywords

    discrimination; organization; trustworthiness; trust; group identity; social identity theory;
    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
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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