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Do people trust more when they are happy or when they are sad? Evidence from an experiment

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  • Hayet Saadaoui
  • Sana El Harbi
  • Lisette Ibanez

Abstract

This paper deals with the role played by incidental emotions on trust decisions. Based on a laboratory experiment with monetary incentives, we explore the way positive and negative emotions impact transfers in a trust game. In addition, we investigate the mechanism through which risk intervenes in the relationship between emotions and trust. Our results suggest that negative emotions influence trust positively, whereas positive emotions decrease trust. This effect disappears once risk is included to the game. Furthermore, we found that transfer in the trust game is driven by other‐regarding preferences and by risk preferences.

Suggested Citation

  • Hayet Saadaoui & Sana El Harbi & Lisette Ibanez, 2019. "Do people trust more when they are happy or when they are sad? Evidence from an experiment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(4), pages 374-383, June.
    • Handle: RePEc:wly:mgtdec:v:40:y:2019:i:4:p:374-383
    DOI: 10.1002/mde.3008
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    Cited by:

    1. Ifcher, John & Zarghamee, Homa & Goff, Sandra H., 2021. "Happiness in the Lab: What Can Be Learned about Subjective Well-Being from Experiments?," GLO Discussion Paper Series 943, Global Labor Organization (GLO).
    2. Sabater-Grande, Gerardo & García-Gallego, Aurora & Georgantzís, Nikolaos & Herranz-Zarzoso, Noemí, 2022. "The effects of personality, risk and other-regarding attitudes on trust and reciprocity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    3. Schniter, E. & Shields, T.W. & Sznycer, D., 2020. "Trust in humans and robots: Economically similar but emotionally different," Journal of Economic Psychology, Elsevier, vol. 78(C).
    4. Benistant, Julien & Suchon, Rémi, 2021. "It does (not) get better: Reference income violation and altruism," Journal of Economic Psychology, Elsevier, vol. 85(C).

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