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Trust, Reciprocity And Social Distance In China: An Experimental Investigation

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Author Info
C. Bram Cadsby () (University of Guelph; Department of Economics)
Fei Song () (Ryerson University)
Yunyun Bi () (Taiping Asset Management; Shanghai, China.)

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Abstract

We investigate the effects of social distance on both actual trusting and reciprocity behavior and beliefs about such behavior. Some participants participated in two financially salient trust games to measure behavior, one with a classmate and the other with a student who was a stranger, while others drawn from the same population completed hypothetical surveys to gauge beliefs and intentions. Actual behavior and beliefs about both one’s own and others’ behavior were statistically indistinguishable. The results together corroborated the expected negative relationship between trust and social distance. However, reciprocity, while proportional to trust, was not responsive to social distance.

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Publisher Info
Paper provided by University of Guelph, Department of Economics in its series Working Papers with number 0809.

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Length: 32 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:gue:guelph:2008-9

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Related research
Keywords: Trust; reciprocity; guanxi; China; behavioral decision-making; social distance; belief.;

Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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  1. Buchan, Nancy R. & Johnson, Eric J. & Croson, Rachel T.A., 2006. "Let's get personal: An international examination of the influence of communication, culture and social distance on other regarding preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 373-398, July. [Downloadable!] (restricted)
  2. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  3. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March. [Downloadable!] (restricted)
  4. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-60, June. [Downloadable!] (restricted)
  5. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 811-846, August. [Downloadable!] (restricted)
  6. 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)
  7. 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)
  8. Gunnthorsdottir, Anna & McCabe, Kevin & Smith, Vernon, 2002. "Using the Machiavellianism instrument to predict trustworthiness in a bargaining game," Journal of Economic Psychology, Elsevier, vol. 23(1), pages 49-66, February. [Downloadable!] (restricted)
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