Traditional trust measurement and the risk confound: An experiment in rural paraguay

Laura Schechter

Artefactual Field Experiments from The Field Experiments Website

Abstract: Play in the traditional trust experiment depends both on trust beliefs and on levels of risk aversion. We ran two experiments with a diverse set of subjects in fifteen villages of rural Paraguay, the traditional trust experiment and a new experiment measuring only risk aversion. We find that risk attitudes are highly predictive of play in the trust game. In addition, omitting risk aversion as a regressor in trust regressions signficiantly changes the coefficients of important explanatory variables such as gender and wealth. We also use data on income and bet choice to calculate players' coefficients of relative risk aversion.

Date: 2005
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Citations: View citations in EconPapers (21)

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Journal Article: Traditional trust measurement and the risk confound: An experiment in rural Paraguay (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:feb:artefa:00106

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