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Guilt-Averse or Reciprocal? Looking at Behavioural Motivations in the Trust Game

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Listed:
  • Yola Engler
  • Rudolf Kerschbamer
  • Lionel Page

Abstract

For the trust game, recent models of belief-dependent motivations make opposite predictions regarding the correlation between back-transfers and secondorder beliefs of the trustor: While reciprocity models predict a negative correlation, guilt-aversion models predict a positive one. This paper tests the hypothesis that the inconclusive results in previous studies investigating the reaction of trustees to their beliefs are due to the fact that reciprocity and guilt-aversion are behaviorally relevant for different subgroups and that their impact cancels out in the aggregate. We find little evidence in support of this hypothesis and conclude that type heterogeneity is unlikely to explain previous results.

Suggested Citation

  • Yola Engler & Rudolf Kerschbamer & Lionel Page, 2016. "Guilt-Averse or Reciprocal? Looking at Behavioural Motivations in the Trust Game," QuBE Working Papers 039, QUT Business School.
    • Handle: RePEc:qut:qubewp:wp039
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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