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Trust and trustworthiness under information asymmetry and ambiguity

Author

Listed:
  • Clots-Figueras, Irma
  • González, Roberto Hernán
  • Kujal, Praveen

Abstract

We introduce uncertainty and ambiguity in the standard investment game. In the uncertainty treatment, investors are informed that the return of the investment is drawn from a publicly known distribution function. In the ambiguity treatment, investors are not informed about the distribution function. We find that both trust and trustworthiness are robust to the introduction of these changes.

Suggested Citation

  • Clots-Figueras, Irma & González, Roberto Hernán & Kujal, Praveen, 2016. "Trust and trustworthiness under information asymmetry and ambiguity," Economics Letters, Elsevier, vol. 147(C), pages 168-170.
  • Handle: RePEc:eee:ecolet:v:147:y:2016:i:c:p:168-170
    DOI: 10.1016/j.econlet.2016.08.019
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    References listed on IDEAS

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    1. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    2. Johnson, Noel D. & Mislin, Alexandra A., 2011. "Trust games: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 865-889.
    3. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    4. Daniel Ellsberg, 1961. "Risk, Ambiguity, and the Savage Axioms," The Quarterly Journal of Economics, Oxford University Press, vol. 75(4), pages 643-669.
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    More about this item

    Keywords

    Investment game; Uncertainty; Ambiguity; Trust; Trustworthiness;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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