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Rational and Biased Trust

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  • Abigail Barr

    (Centre for the Study of African Economies)

Abstract

This paper investigates whether expectations of trustworthiness and resulting acts of trust accord with an objective model of trustworthiness or are biased. Combining experimental and survey data, I find that Ghanaian workers appropriately take account of the religiousness of trustees, but expect those with more children to be less as opposed to more trustworthy, and females to be less and the associationally active to be more trustworthy when they are neither. Trustors do not account for the negative impact on trustworthiness of various recent negative experiences and the positive impact of involvement in voluntary work, full time work, and indigenousness.

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File URL: http://128.118.178.162/eps/dev/papers/0409/0409068.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0409068.

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Length: 28 pages
Date of creation: 28 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0409068

Note: Type of Document - pdf; pages: 28
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Web page: http://128.118.178.162

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Keywords: trust; trustworthiness; expectations; field experiment; Ghana;

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References

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  1. Buchan, Nancy & Croson, Rachel, 2004. "The boundaries of trust: own and others' actions in the US and China," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 55(4), pages 485-504, December.
  2. Holm, Håkan & Nystedt, Paul, 2002. "Intra-Generational Trust - a Semi-Experimental Study of Trust Among Different Generations," Working Papers, Lund University, Department of Economics 2002:16, Lund University, Department of Economics.
  3. Bellemare, C. & Kroger, S., 2003. "On Representative Trust," Discussion Paper, Tilburg University, Center for Economic Research 2003-47, Tilburg University, Center for Economic Research.
  4. John F. Helliwell & Robert D. Putnam, 1999. "Education and Social Capital," NBER Working Papers 7121, National Bureau of Economic Research, Inc.
  5. Ananish Chaudhuri & Lata Gangadharn, 2003. "Gender Differences in Trust and Reciprocity," Department of Economics - Working Papers Series, The University of Melbourne 875, The University of Melbourne.
  6. Lazzarini, S. G. & Madalozzo, R. C & Artes, R. & Siqueira, J. O., 2004. "Measuring trust: An experiment in Brazil," Insper Working Papers, Insper Working Paper, Insper Instituto de Ensino e Pesquisa wpe_42, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  7. Abigail Barr, 2003. "Trust and expected trustworthiness: experimental evidence from zimbabwean villages," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 113(489), pages 614-630, 07.
  8. Fehr, Ernst & Fischbacher, Urs & von Rosenbladt, Bernhard & Schupp, Jürgen & Wagner, Gert G., 2003. "A nation-wide laboratory: Examining trust and trustworthiness by integrating behavioral experiments into representative surveys," Discussion Papers, Technische Universität Berlin, School of Economics and Management 2003/1, Technische Universität Berlin, School of Economics and Management.
  9. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  10. Scharlemann, Jorn P. W. & Eckel, Catherine C. & Kacelnik, Alex & Wilson, Rick K., 2001. "The value of a smile: Game theory with a human face," Journal of Economic Psychology, Elsevier, Elsevier, vol. 22(5), pages 617-640, October.
  11. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, Elsevier, vol. 10(1), pages 122-142, July.
  12. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2646, C.E.P.R. Discussion Papers.
  13. Chaim Fershtman & Uri Gneezy & Frank Verboven, 2005. "Discrimination and Nepotism: The Efficiency of the Anonymity Rule," The Journal of Legal Studies, University of Chicago Press, University of Chicago Press, vol. 34(2), pages 371-396, 06.
  14. Holm, Håkan, 2000. "What’s in a Name? - An ethnical discrimination experiment," Working Papers, Lund University, Department of Economics 2000:3, Lund University, Department of Economics, revised 16 Apr 2001.
  15. Bohnet, Iris & Zeckhauser, Richard, 2003. "Trust, Risk and Betrayal," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp03-041, Harvard University, John F. Kennedy School of Government.
  16. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 811-846, August.
    • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
  17. Bellemare, Charles & Kröger, Sabine, 2004. "On Representative Social Capital," IZA Discussion Papers 1145, Institute for the Study of Labor (IZA).
  18. Abigail Barr & Pieter Serneels, 2004. "Wages and Reciprocity in the Workplace," Development and Comp Systems, EconWPA 0409064, EconWPA.
  19. Bouckaert, Jan & Dhaene, Geert, 2004. "Inter-ethnic trust and reciprocity: results of an experiment with small businessmen," European Journal of Political Economy, Elsevier, Elsevier, vol. 20(4), pages 869-886, November.
  20. Chaim Fershtman & Uri Gneezy, 2001. "Discrimination In A Segmented Society: An Experimental Approach," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(1), pages 351-377, February.
  21. Abigail Barr & Pieter Serneels, 2009. "Reciprocity in the workplace," Experimental Economics, Springer, Springer, vol. 12(1), pages 99-112, March.
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Cited by:
  1. Greig, Fiona & Bohnet, Iris, 2005. "Is There Reciprocity in a Reciprocal Exchange Economy? Evidence from a Slum in Nairobi, Kenya," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp05-044, Harvard University, John F. Kennedy School of Government.

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