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Intention-based reciprocity and signaling of intentions

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  • Toussaert, Séverine
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    Many experiments find that trust intentions are a key determinant of prosociality. If intentions matter, then prosociality should depend on whether trust intentions can be credibly conveyed. This conjecture is formalized and tested in a noisy trust game where I vary the extent to which trust can be credibly signaled. I find that the introduction of noise threatens the onset of trust relations and induces players to form more pessimistic beliefs. Therefore policies that increase transparency of the decision-making environment may foster prosociality. However, the potential impact of such policies could be limited by a large heterogeneity in how individuals respond to changes in their information environment.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167268117300604
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    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 137 (2017)
    Issue (Month): C ()
    Pages: 132-144

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    Handle: RePEc:eee:jeborg:v:137:y:2017:i:c:p:132-144
    DOI: 10.1016/j.jebo.2017.03.001
    Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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