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Collective Trust Behavior

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Author Info
Holm, Håkan () (Department of Economics, Lund University)
Nystedt, Paul () (Department of Economics and Management, Linköping University)
Abstract

This paper investigates trust in situations, where decision-makers are large groups and the decision-mechanism is collective, by developing a game to study trust behavior. Theories from behavioral economics and psychology suggest that trust in such situations may differ from individual trust. Experimental results here reveal a large difference in trust but not in trustworthiness between the individual and collective setting. Furthermore, an artefactual field experiment captures the determinants of collective trust behavior among two cohorts in the Swedish population. One result is that beliefs about the other and the own group are strongly associated with collective trustworthiness and trust behavior.

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File URL: http://www.nek.lu.se/publications/workpap/Papers/WP07_1.pdf
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Publisher Info
Paper provided by Lund University, Department of Economics in its series Working Papers with number 2007:1.

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Length: 58 pages
Date of creation: 20 Dec 2006
Date of revision:
Handle: RePEc:hhs:lunewp:2007_001

Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/
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Related research
Keywords: Collective Trust Voting Experiment Beliefs

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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  1. Martin G. Kocher & Matthias Sutter, . "Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments," Discussion Papers on Strategic Interaction 2002-27, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
    Other versions:
  2. Håkan J. Holm & Anders Danielson, 2005. "Tropic Trust Versus Nordic Trust: Experimental Evidence From Tanzania And Sweden," Economic Journal, Royal Economic Society, vol. 115(503), pages 505-532, 04. [Downloadable!] (restricted)
  3. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital And Predict Financial Decisions," Working Papers 909, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  4. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September. [Downloadable!] (restricted)
  5. Matthias Sutter & Martin G. Kocher, 2004. "Age and the development of trust and reciprocity," Discussion Papers on Strategic Interaction 2004-01, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
    Other versions:
  6. Holm, Håkan & Nystedt, Paul, 2005. "Trust in surveys and games - a matter of money and location?," Working Papers 2005:26, Lund University, Department of Economics, revised 15 Aug 2005. [Downloadable!]
  7. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital and Predict Financial Decisions," Working Papers 182, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies.. [Downloadable!]
  8. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
  9. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November. [Downloadable!] (restricted)
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