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Does stake size matter in trust games?

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Author Info

  • Johansson-Stenman, Olof

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mahmud, Minhaj

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Martinsson, Peter

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

In a trust game conducted in rural Bangladesh, the proportion of money sent decreased significantly with the stake size. Still, even with very large stakes few followed the conventional economic prediction and sent nothing.

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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 140.

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Length: 8 pages
Date of creation: 08 Aug 2004
Date of revision:
Publication status: Published as Johansson-Stenman, Olof, Minhaj Mahmud and Peter Martinsson, 'Does stake size matter in trust games?' in Economics Letters, 2005, pages 365-369.
Handle: RePEc:hhs:gunwpe:0140

Note: Published in Economics Letters, 2005, Vol. 88, p p. 365-369.
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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Trust; trust game; stake size; social capital; field experiment;

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References

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  1. Hoffman, Elizabeth & McCabe, Kevin A & Smith, Vernon L, 1996. "On Expectations and the Monetary Stakes in Ultimatum Games," International Journal of Game Theory, Springer, vol. 25(3), pages 289-301.
  2. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
  3. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, vol. 66(3), pages 569-596, May.
  4. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
  5. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
  6. Lisa Cameron, 1995. "Raising the Stakes in the Ultimatum Game: Experimental Evidence From Indonesia," Working Papers 724, Princeton University, Department of Economics, Industrial Relations Section..
  7. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  8. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital And Predict Financial Decisions," Working Papers 909, Economic Growth Center, Yale University.
  9. Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
  10. Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
  11. Jeffrey Carpenter & Eric Verhoogen & Stephen Burks, 2003. "The Effect of Stakes in Distribution Experiments," Middlebury College Working Paper Series 03-28, Middlebury College, Department of Economics.
  12. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
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