Distinguishing trust from risk: An anatomy of the investment game
Daniel Houser (),
Daniel Schunk () and
Joachim Winter ()
Munich Reprints in Economics from University of Munich, Department of Economics
The role of trust in promoting economic activity and societal development has received considerable academic attention by social scientists. A popular way to measure trust at the individual level is the so-called \"investment game\" (Berg et al., 1995). It has been widely noted, however, that risk attitudes can also affect decisions in this game, and thus in principle confound inferences about trust. We provide novel evidence shedding light on the role of risk attitudes for trusting decisions. To the best of our knowledge our data are the first rigorous evidence that (i) aggregate investment distributions differ significantly between trust and risk environments, and (ii) risk attitudes predict individual investment decisions in risk games but not in the corresponding trust games. Our results are convergent evidence that trust decisions are not tightly connected to a person’s risk attitudes, and they lend support to the \"trust\" interpretation of decisions in investment games.
References: Add references at CitEc
Citations View citations in EconPapers (58) Track citations by RSS feed
Published in Journal of Economic Behavior and Organization 1-2 74(2010): pp. 72-81
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Distinguishing trust from risk: An anatomy of the investment game (2010)
Working Paper: Distinguishing trust from risk: an anatomy of the investment game (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:19378
Access Statistics for this paper
More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Series data maintained by Tamilla Benkelberg ().