Does trust break even? A trust-game experiment with negative endowments

Sascha Füllbrunn () and Jana Vyrastekova

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2023, vol. 103, issue C

Abstract: The Trust Game literature is quite extensive; those experimental studies consider situations where a trustor risks an endowment to become wealthier when trustworthiness pays off. In the worst case, the trustor leaves the experiment with no payment. Our study contrasts that situation to a treatment in which trust and trustworthiness might help to escape an inevitable financial loss. Both the trustor and trustee might break even or even leave the experiment with a positive outcome. We find slightly more trust in our treatment than in the established design; however, we find no difference in trustworthiness.

Keywords: Trust Game; Experiment; Loss domain; Reciprocity; Emotion (search for similar items in EconPapers)
JEL-codes: C72 C91 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:103:y:2023:i:c:s2214804323000083

DOI: 10.1016/j.socec.2023.101982

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