IDEAS home Printed from https://ideas.repec.org/a/eee/chsofr/v162y2022ics0960077922006233.html
   My bibliography  Save this article

Evolution of trust in a hierarchical population with punishing investors

Author

Listed:
  • Sun, Ketian
  • Liu, Yang
  • Chen, Xiaojie
  • Szolnoki, Attila

Abstract

Trust plays an essential role in the development of human society. According to the standard trust game, an investor decides whether to keep or transfer a certain portion of initial stake to a trustee. In the latter case, the stake is enhanced to signal the value of trust. The trustee then chooses how much to return to the investor. We here distinguish two types of investors and two types of trustees who can learn from each other. While a trustee can be trustworthy or untrustworthy, an investor could be normal or punishing one. The latter strategy punishes both untrustworthy trustees and normal investors who are reluctant to control misbehaving trustees. Importantly, we assume a hierarchical population where the portion of investors and trustees is fixed. By means of replicator equation approach, we study the N-player trust game and calculate the level of trust and trustworthiness. We find that the introduction of punishment can induce a stable coexistence state between punishing investors and trustworthy trustees. Furthermore, an intermediate fraction of investors can better promote the evolution of trust when the punishment intensity is low. For more intensive punishment, however, a higher fraction of investors can be more efficient to elevate the trust level. In addition, we reveal that appropriate increase of the punishment intensity can enlarge the attraction domain of the coexistence state.

Suggested Citation

  • Sun, Ketian & Liu, Yang & Chen, Xiaojie & Szolnoki, Attila, 2022. "Evolution of trust in a hierarchical population with punishing investors," Chaos, Solitons & Fractals, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:chsofr:v:162:y:2022:i:c:s0960077922006233
    DOI: 10.1016/j.chaos.2022.112413
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960077922006233
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chaos.2022.112413?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:oup:alecon:v:18:y:2016:i:2:p:506-556. is not listed on IDEAS
    2. Ernst Fehr, 2009. "On The Economics and Biology of Trust," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 235-266, 04-05.
    3. Charness, Gary & Du, Ninghua & Yang, Chun-Lei, 2011. "Trust and trustworthiness reputations in an investment game," Games and Economic Behavior, Elsevier, vol. 72(2), pages 361-375, June.
    4. Johnson, Noel D. & Mislin, Alexandra A., 2011. "Trust games: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 865-889.
    5. Valerio Capraro & Hélène Barcelo, 2021. "Punishing defectors and rewarding cooperators: Do people discriminate between genders?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(1), pages 19-32, September.
    6. Corina E. Tarnita, 2015. "Fairness and Trust in Structured Populations," Games, MDPI, vol. 6(3), pages 1-17, July.
    7. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    8. Ola Kvaløy & Miguel Luzuriaga & Trond E. Olsen, 2017. "A trust game in loss domain," Experimental Economics, Springer;Economic Science Association, vol. 20(4), pages 860-877, December.
    9. Manapat, Michael L. & Nowak, Martin A. & Rand, David G., 2013. "Information, irrationality, and the evolution of trust," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 57-75.
    10. Jinzhuo Liu & Mao Peng & Yunchen Peng & Yong Li & Chen Chu & Xiaoyu Li & Qing Liu, 2021. "Effects of inequality on a spatial evolutionary public goods game," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 94(8), pages 1-7, August.
    11. Christoph Engel & Sebastian J. Goerg & Gaoneng Yu, 2016. "Symmetric vs. Asymmetric Punishment Regimes for Collusive Bribery," American Law and Economics Review, Oxford University Press, vol. 18(2), pages 506-556.
    12. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    13. Li, Hui-Jia & Xu, Wenzhe & Song, Shenpeng & Wang, Wen-Xuan & Perc, Matjaž, 2021. "The dynamics of epidemic spreading on signed networks," Chaos, Solitons & Fractals, Elsevier, vol. 151(C).
    14. Oliver P. Hauser & Christian Hilbe & Krishnendu Chatterjee & Martin A. Nowak, 2019. "Social dilemmas among unequals," Nature, Nature, vol. 572(7770), pages 524-527, August.
    15. Luo-Luo Jiang & Matjaž Perc & Attila Szolnoki, 2013. "If Cooperation Is Likely Punish Mildly: Insights from Economic Experiments Based on the Snowdrift Game," PLOS ONE, Public Library of Science, vol. 8(5), pages 1-7, May.
    16. Wang, Qiang & He, Nanrong & Chen, Xiaojie, 2018. "Replicator dynamics for public goods game with resource allocation in large populations," Applied Mathematics and Computation, Elsevier, vol. 328(C), pages 162-170.
    17. Xing Fang & Xiaojie Chen, 2021. "Evolutionary dynamics of trust in the N-player trust game with individual reward and punishment," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 94(9), pages 1-7, September.
    18. Michael Foley & Rory Smead & Patrick Forber & Christoph Riedl, 2021. "Avoiding the bullies: The resilience of cooperation among unequals," PLOS Computational Biology, Public Library of Science, vol. 17(4), pages 1-18, April.
    19. Lee, Hsuan-Wei & Cleveland, Colin & Szolnoki, Attila, 2022. "Mercenary punishment in structured populations," Applied Mathematics and Computation, Elsevier, vol. 417(C).
    20. Xiaojie Chen & Attila Szolnoki, 2018. "Punishment and inspection for governing the commons in a feedback-evolving game," PLOS Computational Biology, Public Library of Science, vol. 14(7), pages 1-15, July.
    21. Li Yi & Weidong Fang & Wuxiong Zhang & Weiwei Gao & Baoqing Li & Jianxin Li, 2021. "Game-Based Trust in Complex Networks: Past, Present, and Future," Complexity, Hindawi, vol. 2021, pages 1-7, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Yuyuan & Liu, Linjie & Guo, Ruqiang & Zhang, Liang, 2023. "N-player repeated evolutionary trust game under government management," Chaos, Solitons & Fractals, Elsevier, vol. 175(P1).
    2. Zhang, Yanling & Yang, Shuo & Chen, Xiaojie & Bai, Yanbing & Xie, Guangming, 2023. "Reputation update of responders efficiently promotes the evolution of fairness in the ultimatum game," Chaos, Solitons & Fractals, Elsevier, vol. 169(C).
    3. Huang, Changwei & Luo, Yijun & Han, Wenchen, 2023. "Cooperation and synchronization in evolutionary opinion changing rate games," Chaos, Solitons & Fractals, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goeschl, Timo & Jarke, Johannes, 2014. "Trust, but verify? When trustworthiness is observable only through (costly) monitoring," WiSo-HH Working Paper Series 20, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    2. Bogliacino, Francesco & Codagnone, Cristiano, 2021. "Microfoundations, behaviour, and evolution: Evidence from experiments," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 372-385.
    3. Michal Bauer & Nathan Fiala & Ian Levely, 2018. "Trusting Former Rebels: An Experimental Approach to Understanding Reintegration after Civil War," Economic Journal, Royal Economic Society, vol. 128(613), pages 1786-1819, August.
    4. Francesco Bogliacino & Gianluca Grimalda & Laura Jiménez & Daniel Reyes Galvis & Cristiano Codagnone, 2022. "Trust and trustworthiness after a land restitution program: lab-in-the-field evidence from Colombia," Constitutional Political Economy, Springer, vol. 33(2), pages 135-161, June.
    5. Schwerter, Frederik & Zimmermann, Florian, 2020. "Determinants of trust: The role of personal experiences," Games and Economic Behavior, Elsevier, vol. 122(C), pages 413-425.
    6. Paul Rauwolf & Joanna J. Bryson, 2018. "Expectations of Fairness and Trust Co-Evolve in Environments of Partial Information," Dynamic Games and Applications, Springer, vol. 8(4), pages 891-917, December.
    7. Aidin Hajikhameneh & Erik O. Kimbrough, 2019. "Individualism, collectivism, and trade," Experimental Economics, Springer;Economic Science Association, vol. 22(2), pages 294-324, June.
    8. Arnstein Aassve & Pierluigi Conzo & Francesco Mattioli, 2021. "Was Banfield right? New insights from a nationwide laboratory experiment," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1029-1064, November.
    9. Bejarano, Hernán & Gillet, Joris & Rodriguez-Lara, Ismael, 2021. "Trust and trustworthiness after negative random shocks," Journal of Economic Psychology, Elsevier, vol. 86(C).
    10. Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," Sciences Po publications 89, Sciences Po.
      • Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," SciencePo Working papers hal-03596480, HAL.
      • Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," Working Papers hal-03596480, HAL.
    11. Wang, Chaoqian & Szolnoki, Attila, 2022. "Involution game with spatio-temporal heterogeneity of social resources," Applied Mathematics and Computation, Elsevier, vol. 430(C).
    12. repec:hal:spmain:info:hdl:2441/h44c7ona088fb5o9b5dq3nt9u is not listed on IDEAS
    13. Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," Sciences Po publications 89, Sciences Po.
      • Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," SciencePo Working papers Main hal-03596480, HAL.
      • Fabrice Murtin & Lara Fleischer & Vincent Siegerink & Arnstein Aassve & Yann Algan & Romina Boarini & Santiago Gonzalez & Zsuzsanna Lonti & Ulrich Schmidt & Gianluca Grimalda & Rafael Hortala Vallve &, 2018. "Trust and its determinants," Working Papers hal-03596480, HAL.
    14. Fehr, Dietmar & Sutter, Matthias, 2019. "Gossip and the efficiency of interactions," Games and Economic Behavior, Elsevier, vol. 113(C), pages 448-460.
    15. Zhang, Zhe & Zhang, Xu & Putterman, Louis, 2019. "Trust and cooperation at a confluence of worlds: An experiment in Xinjiang, China," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 128-144.
    16. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2010. "Civic Capital as the Missing Link," NBER Working Papers 15845, National Bureau of Economic Research, Inc.
    17. Martin G. Kocher, 2015. "How Trust in Social Dilemmas Evolves with Age," CESifo Working Paper Series 5447, CESifo.
    18. Keser, Claudia & Späth, Maximilian, 2021. "The value of bad ratings: An experiment on the impact of distortions in reputation systems," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    19. Houser, Daniel & Schunk, Daniel & Winter, Joachim, 2010. "Distinguishing trust from risk: An anatomy of the investment game," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 72-81, May.
    20. Anderlini, Luca & Terlizzese, Daniele, 2017. "Equilibrium trust," Games and Economic Behavior, Elsevier, vol. 102(C), pages 624-644.
    21. Zubair, Maria & Khanum, Ayesha & Nasir, Marjan, 2018. "Transfer Of Behavioral Traits From Parents To Children: An Experimental Approach," MPRA Paper 92121, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chsofr:v:162:y:2022:i:c:s0960077922006233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thayer, Thomas R. (email available below). General contact details of provider: https://www.journals.elsevier.com/chaos-solitons-and-fractals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.