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.
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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)
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