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The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States

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Listed:
  • Bohnet, Iris
  • Herrmann, Benedikt
  • Al-Ississ, Mohamad
  • Robbett, Andrea
  • Khalid, Al-Yahia
  • Zeckhauser, Richard Jay

Abstract

To trust is to risk. When we lend someone money, we make ourselves vulnerable, hoping or expecting that the borrower will reward our trust and return the money at a later stage, possibly with interest or a reciprocal favor added. This paper examines whether willingness to trust follows the same logic, that is, whether it responds to changes in the expected value of trusting, much like willingness to take risk responds to changes in the expected value of risk taking in various countries of the Arab Middle East, namely, Jordan, Saudi Arabia and the United Arab Emirates and in the United States.

Suggested Citation

  • Bohnet, Iris & Herrmann, Benedikt & Al-Ississ, Mohamad & Robbett, Andrea & Khalid, Al-Yahia & Zeckhauser, Richard Jay, 2010. "The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States," Scholarly Articles 4449094, Harvard Kennedy School of Government.
  • Handle: RePEc:hrv:hksfac:4449094
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    References listed on IDEAS

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    Cited by:

    1. Samuel Bowles & Sandra Polania-Reyes, 2011. "Economic incentives and social preferences: substitutes or complements?," Department of Economics University of Siena 617, Department of Economics, University of Siena.
    2. Leiser, David & Benita, Rinat & Bourgeois-Gironde, Sacha, 2016. "Differing conceptions of the causes of the economic crisis: Effects of culture, economic training, and personal impact," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 154-163.
    3. Samuel Bowles & Sandra Polania-Reyes, 2012. "Economic Incentives and Social Preferences: Substitutes or Complements?," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 368-425, June.
    4. Leiser, David & Benita, Rinat & Bourgeois-Gironde, Sacha, 2016. "Differing conceptions of the causes of the economic crisis: Effects of culture, economic training, and personal impact," Journal of Economic Psychology, Elsevier, vol. 53(C), pages 154-163.

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