Economics at your fingertips  

Market institutions and the evolution of culture

Ginny Seung Choi and Virgil Henry Storr ()
Additional contact information
Virgil Henry Storr: George Mason University

Evolutionary and Institutional Economics Review, 2018, vol. 15, issue 2, No 2, 243-265

Abstract: Abstract We find experimental evidence suggesting that market institutions are capable of developing their own cultures by influencing generalized and individualized trust. We employ two different markets in this study: the first market fully and automatically enforces all agreed-upon contracts; and the second market offers no such enforcement and allows subjects to defect on previously agreed-upon contracts. We find that a type of culture where people treat one another more or less equally and indiscriminately emerges with the first market, while a culture where people differentiate between the trustworthy and the untrustworthy emerges with the second market. While generalized trust remains the same across both treatments, individualized trust was only important in the treatment where contracts were not enforced in the experimental market. In the treatment where the market offered no enforcement, subjects exhibited less trust towards those with whom they had developed negative relationships and reciprocated at higher levels to those with whom that had developed positive relationships.

Keywords: Culture; Trust; Markets (search for similar items in EconPapers)
JEL-codes: B52 P10 Z10 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from
https://www.springer ... theory/journal/40844

DOI: 10.1007/s40844-018-0103-z

Access Statistics for this article

Evolutionary and Institutional Economics Review is currently edited by Kiichiro Yagi, Yuji Aruka and Takahiro Fujimoto

More articles in Evolutionary and Institutional Economics Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-07-23
Handle: RePEc:spr:eaiere:v:15:y:2018:i:2:d:10.1007_s40844-018-0103-z