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Inequity aversion and trustees' reciprocity in the trust game

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  • Emanuele Ciriolo

Abstract

The introduction of inequity concerns into the Trust Game gives rise to complementary concepts of conditional trustworthiness and unconditional untrustworthiness. When the inequity concern is not accounted for, unconditional untrustworthiness is overestimated. The high proportion of trustees adopting the equal division behavioural norm suggests that an unequal distribution of show-up fees may deter trustors from placing trust, and may eventually reduce the incentive to cooperate for both players. It also follows that increases in income inequality can explain declines in self-reported trust in high-income countries.

Suggested Citation

  • Emanuele Ciriolo, 2005. "Inequity aversion and trustees' reciprocity in the trust game," DULBEA Working Papers 05-20.RS, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:dul:wpaper:05-20rs
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    References listed on IDEAS

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    More about this item

    Keywords

    Trust game; Trustworthiness; Reciprocity; Inequality; Social capital.;

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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