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Collective Trust Behavior

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  • Hakan J. Holm
  • Paul Nystedt

Abstract

This paper investigates trust behavior in situations where decision-makers are large groups and the decision mechanism is collective. Theories from behavioral economics and psychology suggest that trust in such situations may differ from interindividual trust. The experimental results here reveal a large difference in trust but not in trustworthiness between the individual and collective setting. Furthermore, a field experiment captures the determinants of collective trust behavior among two Swedish cohorts. Beliefs about the other group and one's own group are strongly associated with collective trustworthiness and trust behavior. Copyright The editors of the "Scandinavian Journal of Economics" 2010 .

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9442.2009.01593.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 112 (2010)
Issue (Month): 1 (03)
Pages: 25-53

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Handle: RePEc:bla:scandj:v:112:y:2010:i:1:p:25-53

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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References

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  1. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  2. Matthias Sutter & Martin Kocher, 2004. "Age And The Development Of Trust And Reciprocity," Royal Economic Society Annual Conference 2004 105, Royal Economic Society.
  3. Dean Karlan, 2004. "Using experimental economics to measure social capital and predict financial decisions," Artefactual Field Experiments 00074, The Field Experiments Website.
  4. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
  5. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
  6. Martin G. Kocher & Matthias Sutter, . "Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments," Papers on Strategic Interaction 2002-27, Max Planck Institute of Economics, Strategic Interaction Group.
  7. Danielson, Anders & Holm, Hakan J, 2003. "Tropic Trust versus Nordic Trust: Experimental Evidence from Tanzania and Sweden," Working Papers 2003:6, Lund University, Department of Economics.
  8. Holm, Håkan & Nystedt, Paul, 2005. "Trust in surveys and games - a matter of money and location?," Working Papers 2005:26, Lund University, Department of Economics, revised 15 Aug 2005.
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Cited by:
  1. Robert Jiro Netzer & Matthias Sutter, 2009. "Intercultural trust. An experiment in Austria and Japan," Working Papers 2009-05, Faculty of Economics and Statistics, University of Innsbruck.

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