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Rational and Biased Trust

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  • Abigail Barr

    (Centre for the Study of African Economies)

Abstract

This paper investigates whether expectations of trustworthiness and resulting acts of trust accord with an objective model of trustworthiness or are biased. Combining experimental and survey data, I find that Ghanaian workers appropriately take account of the religiousness of trustees, but expect those with more children to be less as opposed to more trustworthy, and females to be less and the associationally active to be more trustworthy when they are neither. Trustors do not account for the negative impact on trustworthiness of various recent negative experiences and the positive impact of involvement in voluntary work, full time work, and indigenousness.

Suggested Citation

  • Abigail Barr, 2004. "Rational and Biased Trust," Development and Comp Systems 0409068, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0409068
    Note: Type of Document - pdf; pages: 28
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    References listed on IDEAS

    as
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    Cited by:

    1. Greig, Fiona & Bohnet, Iris, 2005. "Is There Reciprocity in a Reciprocal Exchange Economy? Evidence from a Slum in Nairobi, Kenya," Working Paper Series rwp05-044, Harvard University, John F. Kennedy School of Government.

    More about this item

    Keywords

    trust; trustworthiness; expectations; field experiment; Ghana;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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