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Beliefs and Trust: An Experiment

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  • Jana Vyrastekova

    ()
    (Departmment of Economics, Tilburg University, The Netherland)

  • Supriya Garikipati

    ()
    (Management School, University of Liverpool, UK)

Abstract

In this paper, we address trust by combining (i) the self-reported trust and belief in trustworthiness of others from a general unpaid questionnaire, (ii) choices made in a social valuation task designed to measure subjects' distributional preferences, (iii) strategies submitted in a trust game in both roles of the game, and (iv) subjects' beliefs about the stategies of their co-player submitted in the form of probability distributions and incentivized by the quadratic scoring rule. We show that trust can be expressed as a belief in positive reciprocity by the trustee. Distributional preferences also play a role in the decision to trust in that they affect the subjects' beliefs about the positive reciprocity of others. Cooperative subjects are more optimistic in their beliefs and therefore they trust more.

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Bibliographic Info

Paper provided by University of Liverpool Management School in its series Research Papers with number 200511.

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Length: 23 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:liv:livedp:200511

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Postal: Management School University of Liverpool, Chatham Street, Liverpool, L69 7ZH, Great Britain
Phone: +44(0)151 795 3108
Fax: +44(0)151 795 3004
Web page: http://www.liv.ac.uk/management/
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Keywords: Experimental Economics; Trust; Beliefs; Distributional preferences;

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References

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Citations

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Cited by:
  1. Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2009. "Who Makes a Good Leader? Social Preferences and Leading-by-Example," Levine's Working Paper Archive 814577000000000099, David K. Levine.
  2. Kamas, Linda & Preston, Anne, 2012. "Distributive and reciprocal fairness: What can we learn from the heterogeneity of social preferences?," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 538-553.
  3. Michael Naef & Jürgen Schupp, 2009. "Measuring Trust: Experiments and Surveys in Contrast and Combination," SOEPpapers on Multidisciplinary Panel Data Research 167, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2009. "Who Makes A Good Leader? Cooperativeness, Optimism And Leading-By-Example," Discussion Papers 2009-19, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  5. Pierre Koning & J. Vyrastekova & S. Onderstal, 2006. "Team incentives in public organisations; an experimental study," CPB Discussion Paper 60, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Jana Vyrastekova & Sander Onderstal & Pierre Koning, 2010. "Self-Selection and the Power of Incentive Schemes: An Experimental Study," Tinbergen Institute Discussion Papers 10-074/1, Tinbergen Institute.
  7. Fairley, Kim & Sanfey, Alan & Vyrastekova, Jana & Weitzel, Utz, 2012. "Social risk and ambiguity in the trust game," MPRA Paper 42302, University Library of Munich, Germany.
  8. Jana Vyrastekova & Sander Onderstal, 2010. "The Trust Game behind the Veil of Ignorance: A Note on Gender Differences," Tinbergen Institute Discussion Papers 10-063/1, Tinbergen Institute.

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