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Trust, Reciprocity And Social Distance In China: An Experimental Investigation

Author

Listed:
  • C. Bram Cadsby

    (University of Guelph; Department of Economics)

  • Fei Song

    (Ryerson University)

  • Yunyun Bi

    (Taiping Asset Management; Shanghai, China.)

Abstract

We investigate the effects of social distance on both actual trusting and reciprocity behavior and beliefs about such behavior. Some participants participated in two financially salient trust games to measure behavior, one with a classmate and the other with a student who was a stranger, while others drawn from the same population completed hypothetical surveys to gauge beliefs and intentions. Actual behavior and beliefs about both one’s own and others’ behavior were statistically indistinguishable. The results together corroborated the expected negative relationship between trust and social distance. However, reciprocity, while proportional to trust, was not responsive to social distance.

Suggested Citation

  • C. Bram Cadsby & Fei Song & Yunyun Bi, 2008. "Trust, Reciprocity And Social Distance In China: An Experimental Investigation," Working Papers 0809, University of Guelph, Department of Economics and Finance.
    • Handle: RePEc:gue:guelph:2008-9
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    References listed on IDEAS

    as
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    Cited by:

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    2. Francisco B. Galarza, 2017. "Trust and Trustworthiness in College: An Experimental Analysis," Working Papers 17-03, Centro de Investigación, Universidad del Pacífico.

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    More about this item

    Keywords

    Trust; reciprocity; guanxi; China; behavioral decision-making; social distance; belief.;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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