Discriminating strategic reciprocity and acquired trust in the repeated trust-game
In repeated trust-game offers made by investors can be attributed to strategic reciprocation-based behavior. However, when a trustee is loyal, personal trust can build up between players, in the same way that lack of positive reciprocation on the part of trustees can motivate investors' distrust. Acquired personal trust or distrust and strategic reciprocation of the opponent's offers have then a cumulative and convergent influence on behavior in the trust game and are not prima facie distinguishable. We propose an experimental protocol which discriminates between these two determinants of trust. We furthermore show that acquired trust is the mere outcome of anonymous repeated interactions taking place during the experiment in the sense that it does not co-vary with an initial and independent baseline disposition to trust among investors: acquired trust crowds out background trust. Moreover, offers are sensitive to the amount and variance of trustees' returns. High returns-rate contribute to increase acquired trust between the players while the volatility of trustees' counter-offers makes them perceive as opportunistic, triggers investors' strategic behavior and detriments the acquisition of personal trust.
|Date of creation:||07 Jan 2011|
|Date of revision:|
|Publication status:||Published in Economics Bulletin, Economics Bulletin, 2011, 31 (1), pp.177-188|
|Note:||View the original document on HAL open archive server: http://jeannicod.ccsd.cnrs.fr/ijn_00713460|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eckel, Catherine C. & Wilson, Rick K., 2004. "Is trust a risky decision?," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 447-465, December.
- Normann, Hans-Theo & Wallace, Brian, 2011.
"The impact of the termination rule on cooperation in a prisoner's dilemma experiment,"
DICE Discussion Papers
19, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Hans-Theo Normann & Brian Wallace, 2012. "The impact of the termination rule on cooperation in a prisoner’s dilemma experiment," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(3), pages 707-718, August.
- McCabe, Kevin A. & Rigdon, Mary L. & Smith, Vernon L., 2003. "Positive reciprocity and intentions in trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 267-275, October.
- François Cochard & Phu Nguyen Van & Marc Willinger, 2004.
"Trusting Behavior in a Repeated Investment Game,"
- Daniel Houser & Daniel Schunk & Joachim Winter, 2006.
"Trust Games Measure Trust,"
MEA discussion paper series
06112, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Houser, Daniel & Schunk, Daniel & Winter, Joachim, 2006. "Trust Games Measure Trust," Sonderforschungsbereich 504 Publications 06-14, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Houser, Daniel & Schunk, Daniel & Winter, Joachim, 2006. "Trust games measure trust," Papers 06-14, Sonderforschungsbreich 504.
- Houser, Daniel & Schunk, Daniel & Winter, Joachim, 2006. "Trust Games Measure Trust," Discussion Papers in Economics 1350, University of Munich, Department of Economics.
- Nava Ashraf & Iris Bohnet & Nikita Piankov, 2006. "Decomposing trust and trustworthiness," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 193-208, September.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:ijn_00713460. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.