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Social Effects in a Multi-Agent Investment Game. An Experimental Analysis

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  • Luigi Mittone
  • Matteo Ploner

Abstract

We experimentally investigate social effects in a principal-agent setting with incomplete contracts. The strategic interaction scheme is based on the Investment Game (Berg et al., 1995). In our setting four trustees and one trustor are interacting and the access to choices of peers in the group of trustees is experimentally manipulated. We find that when the trust- worthiness of some participants is made available to peers, the high levels of trustworthiness displayed by those being observed tend to negatively impact on the trustworthiness of those observing them.

Suggested Citation

  • Luigi Mittone & Matteo Ploner, 2008. "Social Effects in a Multi-Agent Investment Game. An Experimental Analysis," CEEL Working Papers 0805, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpce:0805
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    Cited by:

    1. Simon Gächter & Daniele Nosenzo & Martin Sefton, 2012. "The Impact of Social Comparisons on Reciprocity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1346-1367, December.
    2. M. Bigoni & S. Bortolotti & M. Casari & D. Gambetta, 2012. "Trustworthy by Convention," Working Papers wp827, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Gächter, Simon & Thöni, Christian, 2010. "Social comparison and performance: Experimental evidence on the fair wage-effort hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 531-543, December.
    4. Jérémy Celse, 2009. "Will Joe the Plumber envy Bill Gates? The impact of both absolute and relative differences on interdependent preferences," Working Papers 09-26, LAMETA, Universtiy of Montpellier, revised Dec 2009.
    5. Gächter, Simon & Thöni, Christian, 2010. "Social comparison and performance: Experimental evidence on the fair wage-effort hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 531-543, December.
    6. Simon Gächter & Daniele Nosenzo & Martin Sefton, 2012. "The Impact of Social Comparisons on Reciprocity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1346-1367, December.
    7. Bigoni, Maria & Bortolotti, Stefania & Casari, Marco & Gambetta, Diego, 2013. "It takes two to cheat: An experiment on derived trust," European Economic Review, Elsevier, vol. 64(C), pages 129-146.

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