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Disentangling trust from risk-taking: Triadic approach

Author

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  • Sonsino, Doron
  • Shifrin, Max
  • Lahav, Eyal

Abstract

The willingness to trust human receivers is compared to the inclination to take lottery risk in six distinct scenarios, controlling the return distributions. Trust shows significantly smaller responsiveness to return expectations compared to parallel pure-risk lottery allocation, and paired comparisons reveal that investors sacrifice 5% of the expected payoff to trust anonymous receivers. Trust is more calculated and volatile for males, while appearing relative stable for females. The results complement the accumulating evidence regarding physiological differences between trust and risk, in addition suggesting that the trust-risk gap is larger for females.

Suggested Citation

  • Sonsino, Doron & Shifrin, Max & Lahav, Eyal, 2016. "Disentangling trust from risk-taking: Triadic approach," MPRA Paper 80095, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:80095
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    File URL: https://mpra.ub.uni-muenchen.de/80095/1/MPRA_paper_80095.PDF
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    References listed on IDEAS

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    More about this item

    Keywords

    Trust; risk; gender; ambiguity; betrayal aversion;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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