Trust and Trustworthiness Under The Prospect Theory and Quasi-Hyperbolic Preferences: A Field Experiment in Vietnam

Quang Nguyen, Marie Claire Villeval and Hui Xu
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Hui Xu: University of Lyon, F-69007, France; CNRS, GATE, 93, ChemindesMouilles, F-69130, Ecully, France. Beijing Normal University,19 XinjiekouWai Street, Beijing 100875, P. R. China.

No 1301, Economic Growth Centre Working Paper Series from Nanyang Technological University, School of Social Sciences, Economic Growth Centre

Abstract: This study incorporates risk, time, and social preferences. We conduct a field experiment in Vietnamese villages and estimate the effect of the Cumulative Prospect Theory and of quasi-hyperbolic time preferences parameters on trust and trustworthiness. We find that both probability sensitivity and risk aversion are not related to trust. Yet, more risk averse and less present biased participants are found to be trustworthier. People with longer exposure to a collectivist economy tend to have a lower level of trust and trustworthiness.

Keywords: Trust; Trustworthiness; Cumulative Prospect Theory; Risk preferences; Time preferences; Quasi–hyperbolic preferences; Vietnam; Field experiment (search for similar items in EconPapers)
JEL-codes: C91 C93 D81 D90 O10 O53 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2013-01
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-exp, nep-sea, nep-soc and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:nan:wpaper:1301

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