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Social identity and trust - An experimental investigation

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Author Info
Werner Güth
M. Vittoria Levati ()
Matteo Ploner

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Abstract

We experimentally examine how group identity affects trust behavior in an investment game. In one treatment, group identity is induced purely by minimal groups. In other treatments, group members are additionally related by outcome interdependence established in a prior public goods game. Moving from the standard investment game (where no group identity is prompted) to minimal group identity to two-dimensional group identity, we find no significant differences in trust decisions. However, trust is significantly and positively correlated with contribution decisions, suggesting that "social" trust is behaviorally important.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Discussion Papers on Strategic Interaction with number 2006-41.

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Length: 34 pages
Date of creation: Jan 2007
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Handle: RePEc:esi:discus:2006-41

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Related research
Keywords: Experiment Investment game Trust Group identity

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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References listed on IDEAS
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.:
  1. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, EconWPA. [Downloadable!]
  2. Werner Güth & Vittoria Levati & Rupert Sausgruber, 2005. "Tax morale and (de-)centralization: An experimental study," Public Choice, Springer, vol. 125(1), pages 171-188, July. [Downloadable!] (restricted)
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  3. Dayton-Johnson, Jeff, 2003. "Knitted warmth: the simple analytics of social cohesion," The Journal of Socio-Economics, Elsevier, vol. 32(6), pages 623-645, December. [Downloadable!] (restricted)
  4. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February. [Downloadable!] (restricted)
  5. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March. [Downloadable!] (restricted)
  6. Frey, Bruno S. & Bohnet, Iris, 1997. "Identification in democratic society," The Journal of Socio-Economics, Elsevier, vol. 26(1), pages 25-38. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
  9. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Fernando Aguiar & Pablo Branas-Garza & Maria Paz Espinosa & Luis M. Miller, 2007. "Personal Identity in the Dictator Game," Jena Economic Research Papers 2007-007, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
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