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The interplay of inequality and reference dependence with trust: an experimental study

Author

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  • Gilles Grolleau

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, LESSAC - Laboratoire d'Expérimentation en Sciences Sociales et Analyse des Comportements - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

  • Sana El Harbi

    (USO - جامعة سوسة = Université de Sousse = University of Sousse)

  • Hayet Saadaoui

    (USO - جامعة سوسة = Université de Sousse = University of Sousse)

  • Angela Sutan

    (LESSAC - Laboratoire d'Expérimentation en Sciences Sociales et Analyse des Comportements - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

Abstract

Using a canonical trust game, we investigate whether the inequality of endowment between trustor and trustee and the acquired versus permanent financial state affect trust and trustworthiness. We found that trust and trustworthiness are reference-dependent and that individuals with permanent financial state receive more trust and are more trustworthy than others. In our experiment, unequal endowments do not significantly affect trust, but trustworthiness increases significantly when the trustor is poorer.

Suggested Citation

  • Gilles Grolleau & Sana El Harbi & Hayet Saadaoui & Angela Sutan, 2016. "The interplay of inequality and reference dependence with trust: an experimental study," Post-Print hal-01506396, HAL.
    • Handle: RePEc:hal:journl:hal-01506396
    DOI: 10.1111/boer.12049
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    References listed on IDEAS

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    1. Sutter, Matthias & Kocher, Martin G., 2007. "Trust and trustworthiness across different age groups," Games and Economic Behavior, Elsevier, vol. 59(2), pages 364-382, May.
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    Cited by:

    1. Hayet Saadaoui, 2022. "The influence of emotions on trust: An experimental investigation among potential entrepreneurs in Tunisia," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2737-2747, October.

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