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Breaking the rules: Anticipation of norm violation in a binary-choice trust game

Author

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  • Breuer, Wolfgang
  • Helduser, Christiane
  • Schade, Philipp

Abstract

Studying a binary-choice trust game, we find that trustors who consider trustees to be obligated to reciprocate are ceteris paribus less willing to trust. We argue that norm-orientated trustors anticipate that they will experience negative emotions should trustees violate the obligation to reciprocate. In order to avoid norm violation, trustors lower their willingness to trust. An additional binary-choice trust game, in which subjects act as trustors and subsequently as trustees, reveals that the obligation that trustors assign to the trustee role may be based on social projection.

Suggested Citation

  • Breuer, Wolfgang & Helduser, Christiane & Schade, Philipp, 2016. "Breaking the rules: Anticipation of norm violation in a binary-choice trust game," Economics Letters, Elsevier, vol. 146(C), pages 123-125.
    • Handle: RePEc:eee:ecolet:v:146:y:2016:i:c:p:123-125
    DOI: 10.1016/j.econlet.2016.07.038
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    References listed on IDEAS

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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