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Aversions to trust

  • Anne Corcos François Pannequin

    (LEM - Laboratoire d'Économie Moderne - Université Paris II - Panthéon-Assas : EA4442)

  • Sacha Bourgeois-Gironde

    ()

    (LEM - Laboratoire d'Économie Moderne - Université Paris II - Panthéon-Assas : EA4442, IJN - Institut Jean-Nicod - CNRS : UMR8129 - École normale supérieure [ENS] - Paris - École des Hautes Études en Sciences Sociales (EHESS))

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    In this article, we focus on two types of "aversion" which we deem essential aspects of the notion of trust: betrayal aversion (social) and ambiguity aversion (a special case of aversion to uncertainty). Based on trust-games studies in experimental economics and neuroeconomics, our main goal is to assess the conceptual, behavioral and neurobiological connections between betrayal and ambiguity aversions. From a social and individual psychological point of view the bottom line of our trusting behavior could be our general aversion to ambiguous signals. We approach social trust in the terms of a phenomenon based on uncertainty aversion.Specifically, a reduction of the perceived uncertainty of a social interaction tends to build up a trusting climate conducive to trade by decreasing betrayal aversion.We hypothesize that betrayal aversion and ambiguity aversion bear such a negative correlation. Focusing on this potential negative correlation our approach clearly differs from more positive accounts of trust centred on altruism.

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    File URL: http://jeannicod.ccsd.cnrs.fr/docs/00/73/45/64/PDF/Aversions_to_trust.pdf
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    Paper provided by HAL in its series Post-Print with number ijn_00734564.

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    Date of creation: 25 Nov 2012
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    Publication status: Published, Louvain Economic Review, 2012, 78, 3/4, 152-173
    Handle: RePEc:hal:journl:ijn_00734564
    Note: View the original document on HAL open archive server: http://jeannicod.ccsd.cnrs.fr/ijn_00734564
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    1. Sacha Bourgeois-Gironde & Anne Corcos & François Pannequin, 2012. "Is trust an ambiguous rather than a risky decision," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) ijn_00734563, HAL.
    2. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2005. "Trusting the Stock Market," NBER Working Papers 11648, National Bureau of Economic Research, Inc.
    3. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    4. Daniel Houser & Daniel Schunk & Joachim Winter, 2009. "Distinguishing trust from risk: an anatomy of the investment game," IEW - Working Papers 450, Institute for Empirical Research in Economics - University of Zurich.
    5. Sacha Bourgeois-gironde & Anne Corcos, 2011. "Discriminating strategic reciprocity and acquired trust in the repeated trust-game," Economics Bulletin, AccessEcon, vol. 31(1), pages 177-188.
    6. Schechter, Laura, 2007. "Traditional trust measurement and the risk confound: An experiment in rural Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 272-292, February.
    7. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, Khalid & Shehata, Mohamed, 2009. "The impact of social value orientation and risk attitudes on trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 368-380, June.
    8. Sacha Bourgeois-Gironde & Anne Corcos, 2011. "Discriminating strategic reciprocity and acquired trust in the repeated trust-game," Post-Print ijn_00713460, HAL.
    9. Daniel Ellsberg, 2000. "Risk, Ambiguity and the Savage Axioms," Levine's Working Paper Archive 7605, David K. Levine.
    10. Anne Corcos & François Pannequin & Sacha Bourgeois-gironde, 2012. "Is trust an ambiguous rather than a risky decision?," Economics Bulletin, AccessEcon, vol. 32(3), pages 2255-2266.
    11. repec:hal:journl:ijn_00734563 is not listed on IDEAS
    12. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    13. Sujoy Chakravarty & Jaideep Roy, 2009. "Recursive expected utility and the separation of attitudes towards risk and ambiguity: an experimental study," Theory and Decision, Springer, vol. 66(3), pages 199-228, March.
    14. 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.
    15. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    16. Camerer, Colin & Weber, Martin, 1992. " Recent Developments in Modeling Preferences: Uncertainty and Ambiguity," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 325-70, October.
    17. Olsen, Robert A., 2008. "Trust as risk and the foundation of investment value," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2189-2200, December.
    18. Bohnet, Iris & Zeckhauser, Richard, 2003. "Trust, Risk and Betrayal," Working Paper Series rwp03-041, Harvard University, John F. Kennedy School of Government.
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