EconPapers    
Economics at your fingertips  
 

A city-wide experiment on trust discrimination

Armin Falk and Christian Zehnder

Journal of Public Economics, 2013, vol. 100, issue C, 15-27

Abstract: This paper reports evidence from a city-wide field experiment on trust. About 1000 inhabitants of Zurich take part in a trust experiment, in which first movers can condition their investments on the residential districts of second movers. First movers differentiate their investments systematically depending on where in Zurich the second mover lives. The observed discrimination pattern is robust as indicated by additional data collected in a newspaper study and a laboratory experiment. Economic status seems to be key for a district's reputation: first movers invest more if second movers live in high-income districts. Investments into districts are positively correlated with the corresponding willingness to repay, which indicates that first movers correctly anticipate the relative trustworthiness of inhabitants of different districts. Furthermore, we find that people trust strangers from their own district significantly more than strangers from other districts. This in-group effect is, at least partly, driven by more accurate beliefs about the trustworthiness of in-group members.

Keywords: Trust; Field experiment; Discrimination; In-group effect (search for similar items in EconPapers)
JEL-codes: C90 D63 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (103)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272713000182
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:100:y:2013:i:c:p:15-27

DOI: 10.1016/j.jpubeco.2013.01.005

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:pubeco:v:100:y:2013:i:c:p:15-27