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Do I care if you know I betrayed you?

Author

Listed:
  • James C Cox

    (Georgia State University)

  • Danyang Li

    (Georgia State University)

Abstract

In this paper, we report results derived from a laboratory experiment based on a modifed trust game. We introduced a coin flip between decisions of trustors and trustees in the trust game. The realized outcome of the coin flip determines the productivity of trust. By varying trustors' ability to observe the outcome of the coin flip, we allow the trustees to be able to hide betrayal "behind a coin flip." We find that more trustees choose to defect when betrayal is obfuscated than when it is revealed. Our result suggests that subjects who choose to repay trust may just pretend to be cooperative, but do not really value the outcome of cooperation.

Suggested Citation

  • James C Cox & Danyang Li, 2012. "Do I care if you know I betrayed you?," Economics Bulletin, AccessEcon, vol. 32(4), pages 2839-2848.
    • Handle: RePEc:ebl:ecbull:eb-12-00609
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    References listed on IDEAS

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    More about this item

    Keywords

    Experiments; Betrayal Cost; Trust; Cooperation;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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