Do people trust more when they are happy or when they are sad? Evidence from an experiment

Hayet Saadaoui, Sana El Harbi and Lisette Ibanez
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Hayet Saadaoui: CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Sana El Harbi: Université de Sousse

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Abstract: This paper deals with the role played by incidental emotions on trust decisions. Based on a laboratory experiment with monetary incentives, we explore the way positive and negative emotions impact transfers in a trust game. In addition, we investigate the mechanism through which risk intervenes in the relationship between emotions and trust. Our results suggest that negative emotions influence trust positively, whereas positive emotions decrease trust. This effect disappears once risk is included to the game. Furthermore, we found that transfer in the trust game is driven by otherregarding preferences and by risk preferences.

Date: 2019
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Citations: View citations in EconPapers (4)

Published in Managerial and Decision Economics, 2019, 40 (4), pp.374-383. ⟨10.1002/mde.3008⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02090932

DOI: 10.1002/mde.3008

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