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Trusting Behavior in a Repeated Investment Game

Author

Listed:
  • François Cochard

    () (CRESE - Centre de REcherches sur les Stratégies Economiques - UFC - UBFC - Université Bourgogne Franche-Comté - UFC - Université de Franche-Comté)

  • Phu Nguyen Van

    (BETA - Bureau d'Economie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Marc Willinger

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

We compare a seven period repeated investment game to the one-shot investment game. On an average, in the repeated game, player A (the “trustor”) sends more and player B (the “trustee”) returns a larger percentage than in the one-shot game. Both the amount sent and the percentage returned increase up to period 5 and drop sharply thereafter. The “reciprocity hypothesis” for B players' behavior is compatible with the first five periods, but in the two end periods, most B players behaved strategically by not returning. The “reciprocity hypothesis” for A players' behavior is compatible for all periods of the game.

Suggested Citation

  • François Cochard & Phu Nguyen Van & Marc Willinger, 2004. "Trusting Behavior in a Repeated Investment Game," Post-Print hal-00459746, HAL.
  • Handle: RePEc:hal:journl:hal-00459746 DOI: 10.1016/j.jebo.2003.07.004 Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00459746
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    References listed on IDEAS

    as
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    Keywords

    Investment game; Trust; Reciprocity; Repetition;

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