Trust and trustworthiness reputations in an investment game
AbstractTrust is an essential component of good social outcomes and effective economic performance. Reputation on the trustee's past behavior in the same role has proven to be greatly effective at raising the level of trust. In this study, we show that providing information on the trustee's past behavior as the trustor is equally effective as a reputation system. In fact, people still find it worthwhile to invest in a reputation as a trusting person, even though the immediate payoff for trusting is poor. This confirms the role of indirect reciprocity as a strategic notion based on reputation, whereby pro-social actions by one person towards a second person are sanctioned by a third party.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 72 (2011)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Experiment Indirect reciprocity Trust Reputation systems;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006.
"The value of reputation on eBay: A controlled experiment,"
Springer, vol. 9(2), pages 79-101, June.
- Resnick, Paul & Zeckhauser, Richard & Swanson, John & Lockwood, Kate, 2003. "The Value of Reputation on eBay: A Controlled Experiment," Working Paper Series rwp03-007, Harvard University, John F. Kennedy School of Government.
- Gary Charness & Matthew Rabin, 2002.
"Understanding Social Preferences With Simple Tests,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(3), pages 817-869, August.
- Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
- Gary Charness & Matthew Rabin, 2003. "Understanding Social Preferences with Simple Tests," General Economics and Teaching 0303002, EconWPA.
- Charness, Gary & Rabin, Matthew, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt3d04q5sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Iris Bohnet & Steffen Huck, 2004.
"Repetition and Reputation: Implications for Trust and Trustworthiness When Institutions Change,"
CREMA Working Paper Series
2004-09, Center for Research in Economics, Management and the Arts (CREMA).
- Iris Bohnet & Steffen Huck, 2004. "Repetition and Reputation: Implications for Trust and Trustworthiness When Institutions Change," American Economic Review, American Economic Association, vol. 94(2), pages 362-366, May.
- Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October.
- Chun-Lei Yang & Joachim Weimann & Atanasios Mitropoulos, 2006. "An Alternative Approach To Explaining Bargaining Behaviour In Simple Sequential Games," Pacific Economic Review, Wiley Blackwell, vol. 11(2), pages 201-221, 06.
- Altmann, Steffen & Dohmen, Thomas & Wibral, Matthias, 2007.
"Do the Reciprocal Trust Less?,"
IZA Discussion Papers
3010, Institute for the Study of Labor (IZA).
- John List, 2006.
"The behavioralist meets the market: Measuring social preferences and reputation effects in actual transactions,"
Natural Field Experiments
00300, The Field Experiments Website.
- John A. List, 2006. "The Behavioralist Meets the Market: Measuring Social Preferences and Reputation Effects in Actual Transactions," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 1-37, February.
- John A. List, 2005. "The Behavioralist Meets the Market: Measuring Social Preferences and Reputation Effects in Actual Transactions," NBER Working Papers 11616, National Bureau of Economic Research, Inc.
- Dirk Engelmann & Urs Fischbacher, 2008.
"Indirect Reciprocity and Strategic Reputation Building in an Experimental Helping Game,"
TWI Research Paper Series
34, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Engelmann, Dirk & Fischbacher, Urs, 2009. "Indirect reciprocity and strategic reputation building in an experimental helping game," Games and Economic Behavior, Elsevier, vol. 67(2), pages 399-407, November.
- Dirk Engelmann & Urs Fischbacher, . "Indirect Reciprocity and Strategic Reputation Building in an Experimental Helping Game," IEW - Working Papers 132, Institute for Empirical Research in Economics - University of Zurich.
- Dirk Engelmann & Urs Fischbacher, 2003. "Indirect Reciprocity and Strategic Reputation Building in an Experimental Helping Game," CERGE-EI Working Papers wp215, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Gary E. Bolton & Elena Katok & Axel Ockenfels, 2003.
"How Effective are Electronic Reputation Mechanisms? An Experimental Investigation,"
Working Paper Series in Economics
3, University of Cologne, Department of Economics.
- Gary E. Bolton & Elena Katok & Axel Ockenfels, 2004. "How Effective Are Electronic Reputation Mechanisms? An Experimental Investigation," Management Science, INFORMS, vol. 50(11), pages 1587-1602, November.
- Bolton, Gary E. & Katok, Elena & Ockenfels, Axel, 2005. "Cooperation among strangers with limited information about reputation," Journal of Public Economics, Elsevier, vol. 89(8), pages 1457-1468, August.
- Ben Greiner & Maria Vittoria Levati, 2003.
"Indirect Reciprocity in Cyclical Networks - An Experimental Study -,"
Papers on Strategic Interaction
2003-15, Max Planck Institute of Economics, Strategic Interaction Group.
- Greiner, Ben & Vittoria Levati, M., 2005. "Indirect reciprocity in cyclical networks: An experimental study," Journal of Economic Psychology, Elsevier, vol. 26(5), pages 711-731, October.
- John Duffy & Huan Xie & Yong-Ju Lee, 2008.
"Social Norms, Information and Trust among Strangers: Theory and Evidence,"
08007, Concordia University, Department of Economics, revised Jul 2001.
- John Duffy & Huan Xie & Yong-Ju Lee, 2013. "Social norms, information, and trust among strangers: theory and evidence," Economic Theory, Springer, vol. 52(2), pages 669-708, March.
- Theodore C. Bergstrom, 2002. "Evolution of Social Behavior: Individual and Group Selection," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 67-88, Spring.
- Buchan, Nancy & Croson, Rachel, 2004. "The boundaries of trust: own and others' actions in the US and China," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 485-504, December.
- Seinen, Ingrid & Schram, Arthur, 2006. "Social status and group norms: Indirect reciprocity in a repeated helping experiment," European Economic Review, Elsevier, vol. 50(3), pages 581-602, April.
- Jordi Brandts & Gary Charness, 2004. "Do Labour Market Conditions Affect Gift Exchange? Some Experimental Evidence," Economic Journal, Royal Economic Society, vol. 114(497), pages 684-708, 07.
- Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
- Liang, Pinghan & Meng, Juanjuan, 2013. "Love me, love my dog: an experimental study on social connections and indirect reciprocity," MPRA Paper 45270, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.