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Trust and expected trustworthiness: an experimental investigation

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  • Abigail Barr

Abstract

An economic experiment involving separate sessions in 24 small, tightly knit communities reveals that trust is higher where greater trustworthiness is expected and lower variance in levels of trustworthiness is perceived. A model in which potential trusters behaviour is likened to a risky investment explains nearly fifty percent of the variation in their behaviour between communities. The predicted relationships continue to exist following the introduction of an additional, important variable relating to resettlement into the model, although the precise forms of the relationships vary between different types of community. The 24 communities are all Zimbabwean, 18 resettled and 6 not.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2001-12.

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Date of creation: 2001
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Handle: RePEc:csa:wpaper:2001-12

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Keywords: trust; trustworthiness; field experiment; Zimbabwe; resettlement;

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References

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  1. Edward L. Glaeser & David Laibson & Jose A. Scheinkman & Christine L. Soutter, 1999. "What is Social Capital? The Determinants of Trust and Trustworthiness," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1875, Harvard - Institute of Economic Research.
  2. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, Elsevier, vol. 7(3), pages 346-380, November.
  3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
  4. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 653-60, June.
  5. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
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Cited by:
  1. Buchan, Nancy & Croson, Rachel, 2004. "The boundaries of trust: own and others' actions in the US and China," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 55(4), pages 485-504, December.
  2. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics.
  3. Tanaka, Tomomi & Camerer, Colin & Nguyen, Quang, 2009. "Measuring Norms of Redistributive Transfers: Trust Experiments and Survey Data from Vietnam," MPRA Paper 16119, University Library of Munich, Germany.
  4. Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.

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