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Beliefs and Trust : An Experiment

Author

Listed:
  • Vyrastekova, J.

    (Tilburg University, School of Economics and Management)

  • Garikipati, S.

Abstract

In this paper, we address trust by combining (i) the self-reported trust and belief in trustworthiness of others from a general unpaid questionnaire, (ii) choices made in a social valuation task designed to measure subjects' distributional preferences, (iii) strategies submitted in a trust game in both roles of the game, and (iv) subjects' beliefs about the stategies of their co-player submitted in the form of probability distributions and incentivized by the quadratic scoring rule. We show that trust can be expressed as a belief in positive reciprocity by the trustee. Distributional preferences also play a role in the decision to trust in that they affect the subjects' beliefs about the positive reciprocity of others. Cooperative subjects are more optimistic in their beliefs and therefore they trust more.
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Suggested Citation

  • Vyrastekova, J. & Garikipati, S., 2005. "Beliefs and Trust : An Experiment," Other publications TiSEM d17376c2-9565-428e-9b8a-9, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:d17376c2-9565-428e-9b8a-9c99acf433e3
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    Citations

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    Cited by:

    1. Pierre Koning & J. Vyrastekova & S. Onderstal, 2006. "Team incentives in public organisations; an experimental study," CPB Discussion Paper 60, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Kamas, Linda & Preston, Anne, 2012. "Distributive and reciprocal fairness: What can we learn from the heterogeneity of social preferences?," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 538-553.
    3. Simon Gächter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2012. "Who Makes A Good Leader? Cooperativeness, Optimism, And Leading-By-Example," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 953-967, October.
    4. Jana Vyrastekova & Sander Onderstal & Pierre Koning, 2012. "Self-selection and the power of incentive schemes: an experimental study," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4211-4219, November.
    5. Kamas, Linda & Preston, Anne, 2015. "Can social preferences explain gender differences in economic behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 525-539.
    6. Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2008. "Who Makes a Good Leader? Social Preferences and Leading-by-Example," Discussion Papers 2008-16, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    7. Naef, Michael & Schupp, Jürgen, 2009. "Measuring Trust: Experiments and Surveys in Contrast and Combination," IZA Discussion Papers 4087, Institute of Labor Economics (IZA).
    8. Susana Martínez-Restrepo & Juan Camilo Mejía & Erika Enríquez, 2016. "Eliciting women's willingness to take a job. Evidence from displaced and extremely poor women in Cali, Colombia," Coyuntura Económica, Fedesarrollo, vol. 46(1), pages 149-173, June.
    9. De Marco Giuseppe & Immordino Giovanni, 2014. "Reciprocity in the Principal–Multiple Agent Model," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 445-482, January.
    10. Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2008. "Who Makes a Good Leader? Social Preferences and Leading-by-Example," Discussion Papers 2008-16, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    11. Fairley, Kim & Sanfey, Alan & Vyrastekova, Jana & Weitzel, Utz, 2012. "Social risk and ambiguity in the trust game," MPRA Paper 42302, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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