Social influence in trustors’ neighbourhoods

Luigi Luini, Annamaria Nese and Patrizia Sbriglia

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2014, vol. 53, issue C, 97-110

Abstract: We offer new and clean evidence that social interactions impact on individuals’ choices. In an experimental trust game we study whether and how trustor's behaviour is affected by social influence of other trustors’ choices over time. We account for three important factors of trustors’ preferences: risk attitude, generosity and expected trustworthiness. Our results confirm that trustor's behaviour is affected by peers. We find a general convergence in trusting behaviour: the effect of social influence is (for most of subjects) significantly reducing the amount sent by trustors in each period. Furthermore, analyzing contagion within the neighbourhoods, we find that agents tend to imitate similar types ((un)-generous or (un)trusting) when placed in the same neighbourhood. Indeed – in the few neighbourhoods with a prevalence of generous and risk-loving subjects – trust substantially increases over time. Nearness, without any strategic component, is a clear element of contagion in trustors’ behaviour.

Keywords: Trust game; Experiments; Social influence; Contagion (search for similar items in EconPapers)
JEL-codes: C72 C91 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Social Influence in Trustors' Neighborhoods (2012)
Working Paper: Social Influence in Trustors’ Neighborhoods (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:53:y:2014:i:c:p:97-110

DOI: 10.1016/j.socec.2014.08.007

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