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Gender Differences in Trust and Reciprocity

Ananish Chaudhuri and Lata Gangadharan

No 136, Working Papers from Department of Economics, The University of Auckland

Abstract: We use the investment game introduced by Berg, Dickhaut and McCabe (1995) to explore gender differences in trust and reciprocity. In doing so we replicate and extend the results first reported by Croson and Buchan (1999). We find that men exhibit greater trust than women do while women show higher levels of reciprocity. Trusting behavior is driven strongly by expectations of reciprocation. We posit that the lower levels of trust exhibited by women may be attributed to a higher degree of risk aversion.

Date: 2003
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