The glue of the economic system: the effect of relational goods on trust and trustworthiness
AbstractThe role of “relational goods” is almost unexplored in the literature, yet our experimental results document that, even in their weakest form (opportunity of meeting an unknown player at the end of an experimental game), they significantly affect important “lubricants” of economic activity such as trust and trustworthiness and generate significant departures from the standard Nash equilibrium outcome in trust (investment) games. Our findings suggest that relational goods are an important “source of energy” in economic interactions and that the study of this “neglected particle” of socioeconomic life may produce significant advancements on both positive and normative economics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia in its series CEEL Working Papers with number 0705.
Date of creation: 2007
Date of revision:
relational goods; trust; experimental games;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-08 (All new papers)
- NEP-CBE-2007-08-08 (Cognitive & Behavioural Economics)
- NEP-EXP-2007-08-08 (Experimental Economics)
- NEP-GTH-2007-08-08 (Game Theory)
- NEP-HAP-2007-08-08 (Economics of Happiness)
- NEP-SOC-2007-08-08 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Georg Kirchsteiger & Ernst Fehr & Arno Riedl, 1993.
"Does Fairness Prevent Market Clearing? An Experimental Investigation,"
ULB Institutional Repository
2013/5927, ULB -- Universite Libre de Bruxelles.
- Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May.
- Fehr, Ernst & Kirchsteiger, Georg & Riedl, Arno, 1993. "Does fairness prevent market clearing? An experimental investigation," Open Access publications from Maastricht University urn:nbn:nl:ui:27-16460, Maastricht University.
- Bohnet, Iris & Frey, Bruno S., 1999. "The sound of silence in prisoner's dilemma and dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 43-57, January.
- Buchan, Nancy R. & Johnson, Eric J. & Croson, Rachel T.A., 2006. "Let's get personal: An international examination of the influence of communication, culture and social distance on other regarding preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 373-398, July.
- Fehr, Ernst & Schmidt, Klaus M., 1998.
"A Theory of Fairness, Competition and Cooperation,"
CEPR Discussion Papers
1812, C.E.P.R. Discussion Papers.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
- Gary Charness & Matthew Rabin, 2002.
"Understanding Social Preferences With Simple Tests,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(3), pages 817-869, August.
- Gary Charness & Matthew Rabin, 2003. "Understanding Social Preferences with Simple Tests," General Economics and Teaching 0303002, EconWPA.
- Charness, Gary & Rabin, Matthew, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt3d04q5sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
- Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000.
The Quarterly Journal of Economics,
MIT Press, vol. 115(3), pages 811-846, August.
- James Andreoni, 2001. "Giving According to GARP," Theory workshop papers 339, UCLA Department of Economics.
- Leonardo Becchetti & Giacomo degli Antoni, 2009.
"The Sources of Happiness: Evidence from the Investment Game,"
Econometica Working Papers
- Becchetti, Leonardo & Degli Antoni, Giacomo, 2010. "The sources of happiness: Evidence from the investment game," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 498-509, August.
- Leonardo Becchetti & Giacomo Degli Antoni & Marco Faillo, 2010. "Social Distance, Cooperation and Other Regarding Preferences: A New Approach Based on the Theory of Relational Goods," Econometica Working Papers wp18, Econometica.
- Lotito, Gianna & Migheli, Matteo & Ortona, Guido, 2011. "An experimental inquiry into the nature of relational goods," POLIS Working Papers 160, Institute of Public Policy and Public Choice - POLIS.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marco Tecilla).
If references are entirely missing, you can add them using this form.