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The glue of the economic system: the effect of relational goods on trust and trustworthiness

Author

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  • Leonardo Becchetti
  • Giacomo Degli Antoni
  • Marco Faillo
  • Luigi Mittone

Abstract

The role of �relational goods� is almost unexplored in the literature, yet our experimental results document that, even in their weakest form (opportunity of meeting an unknown player at the end of an experimental game), they significantly affect important �lubricants� of economic activity such as trust and trustworthiness and generate significant departures from the standard Nash equilibrium outcome in trust (investment) games. Our findings suggest that relational goods are an important �source of energy� in economic interactions and that the study of this �neglected particle� of socioeconomic life may produce significant advancements on both positive and normative economics.

Suggested Citation

  • Leonardo Becchetti & Giacomo Degli Antoni & Marco Faillo & Luigi Mittone, 2007. "The glue of the economic system: the effect of relational goods on trust and trustworthiness," CEEL Working Papers 0705, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpce:0705
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    Cited by:

    1. Lotito, Gianna & Migheli, Matteo & Ortona, Guido, 2011. "An experimental inquiry into the nature of relational goods," POLIS Working Papers 160, Institute of Public Policy and Public Choice - POLIS.
    2. Leonardo Becchetti & Giacomo Degli Antoni & Marco Faillo, 2011. "Social Distance, Cooperation and Other-regarding Preferences: A New Approach Based on the Theory of Relational Goods," Palgrave Macmillan Books, in: Lorenzo Sacconi & Giacomo Degli Antoni (ed.), Social Capital, Corporate Social Responsibility, Economic Behaviour and Performance, chapter 8, pages 243-259, Palgrave Macmillan.
    3. Gianna Lotito & Matteo Migheli & Guido Ortona, 2015. "An Experimental Inquiry into the Nature of Relational Goods, and Their Impact on Co-operation," Group Decision and Negotiation, Springer, vol. 24(4), pages 699-722, July.
    4. Becchetti, Leonardo & Degli Antoni, Giacomo, 2010. "The sources of happiness: Evidence from the investment game," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 498-509, August.

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    More about this item

    Keywords

    relational goods; trust; experimental games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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