Bornhorst, Fabian (Department of Economics, European University Institute) Ichino, Andrea (Department of Economics, European University Institute) Kirchkamp, Oliver () (Sonderforschungsbereich 504) Schlag, Karl H. (Economics Dept. 3, University of Bonn) Winter, Eyal (Center of Rationality and Interactive Decision Theory, Hebrew University of Jerusalem)
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We run an experiment that implements a finitely repeated version of the trust game in which players can choose in each period with whom to interact. Change in trust and trustworthiness in terms of previous experience is statistically investigated where confounding factors are controlled for. Motives such as reinforcement learning, reciprocity and rationality are useful to explain findings. Overall we find a high persistence of choice and uncover more trust and trustworthiness than in the one shot experiments. Towards the end of the game the degree of trust and trustworthiness decline.
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Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number
04-43.
Length: 37 pages Date of creation: 10 Mar 2004 Date of revision: Handle: RePEc:xrs:sfbmaa:04-43
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, and from the Research Council of the EUI is gratefully acknowledged. Contact details of provider: Postal: D-68131 Mannheim Phone: (49) (0) 621-292-2547 Fax: (49) (0) 621-292-5594 Email: Web page: http://www.sfb504.uni-mannheim.de/ More information through EDIRC
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