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Guilt averse or reciprocal? Looking at behavioral motivations in the trust game

Author

Listed:
  • Yola Engler

    () (Queensland University of Technology and QuBE)

  • Rudolf Kerschbamer

    () (University Innsbruck)

  • Lionel Page

    () (Queensland University of Technology and QuBE)

Abstract

Abstract For the trust game, recent models of belief-dependent motivations make opposite predictions regarding the correlation between back transfers and second-order beliefs of the trustor: while reciprocity models predict a negative correlation, guilt-aversion models predict a positive one. This paper tests the hypothesis that the inconclusive results in the previous studies investigating the reaction of trustees to their beliefs are due to the fact that reciprocity and guilt aversion are behaviorally relevant for different subgroups and that their impact cancels out in the aggregate. We find little evidence in support of this hypothesis and conclude that type heterogeneity is unlikely to explain previous results.

Suggested Citation

  • Yola Engler & Rudolf Kerschbamer & Lionel Page, 2018. "Guilt averse or reciprocal? Looking at behavioral motivations in the trust game," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(1), pages 1-14, July.
  • Handle: RePEc:spr:jesaex:v:4:y:2018:i:1:d:10.1007_s40881-018-0051-8
    DOI: 10.1007/s40881-018-0051-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Behavioral game theory; Experiment; Intention based preferences;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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