Aversions to trust
AbstractIn this article, we focus on two types of "aversion" which we deem essential aspects of the notion of trust: betrayal aversion (social) and ambiguity aversion (a special case of aversion to uncertainty). Based on trust-games studies in experimental economics and neuroeconomics, our main goal is to assess the conceptual, behavioral and neurobiological connections between betrayal and ambiguity aversions. From a social and individual psychological point of view the bottom line of our trusting behavior could be our general aversion to ambiguous signals. We approach social trust in the terms of a phenomenon based on uncertainty aversion.Specifically, a reduction of the perceived uncertainty of a social interaction tends to build up a trusting climate conducive to trade by decreasing betrayal aversion.We hypothesize that betrayal aversion and ambiguity aversion bear such a negative correlation. Focusing on this potential negative correlation our approach clearly differs from more positive accounts of trust centred on altruism.
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Date of creation: 25 Nov 2012
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Publication status: Published, Louvain Economic Review, 2012, 78, 3/4, 152-173
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trust game - betrayal aversion - ambiguity aversion - neuroeconomics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
- NEP-EVO-2012-10-06 (Evolutionary Economics)
- NEP-EXP-2012-10-06 (Experimental Economics)
- NEP-GTH-2012-10-06 (Game Theory)
- NEP-HPE-2012-10-06 (History & Philosophy of Economics)
- NEP-MIC-2012-10-06 (Microeconomics)
- NEP-SOC-2012-10-06 (Social Norms & Social Capital)
- NEP-UPT-2012-10-06 (Utility Models & Prospect Theory)
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