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Trust and Reciprocity between Spouses in India

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  • Carolina Castilla

Abstract

I present results from the first trust game conducted among married couples. The experiment consisted of a one-shot trust game where spouses were taken into separate rooms, not allowed to communicate, given a significant endowment, and both strategies and payoffs were common knowledge. Results indicate that only 3 percent of spouses in the sender role transfer the entire amount; the average proportion sent is 57 percent of the endowment. The limited sending is costly because the household on average is walking away with half of the potential earnings. The results provide further evidence of the lack of Pareto Efficiency within the household.

Suggested Citation

  • Carolina Castilla, 2015. "Trust and Reciprocity between Spouses in India," American Economic Review, American Economic Association, vol. 105(5), pages 621-624, May.
    • Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:621-24
    Note: DOI: 10.1257/aer.p20151117
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    References listed on IDEAS

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    Cited by:

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    3. Baland, Jean-Marie & Bequet, Ludovic & Guirkinger, Catherine & Manuel, Clarice, 2024. "Sharing norm, household efficiency and female demand for agency in the Philippines," World Development, Elsevier, vol. 174(C).
    4. Arjan Verschoor & Bereket Kebede & Alistair Munro & Marcela Tarazona, 2019. "Spousal Control and Efficiency of Intra-household Decision-Making: Experiments among Married Couples in India, Ethiopia and Nigeria," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 1171-1196, September.
    5. Gonzalez Ramirez, M. Jimena & Meriggi, Niccolo, 2016. "A Study of Intra-household and Gender Differences in Risk Preferences and Their Effect on Household Investment Decisions in Rural Cameroon," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236078, Agricultural and Applied Economics Association.
    6. SAWADA Yasuyuki & TANAKA Mari, 2024. "Family Labor, Enforcement, and Product Quality: Evidence from the Lao textile industry," Discussion papers 24061, Research Institute of Economy, Trade and Industry (RIETI).
    7. Fafchamps, Marcel & Said, Farah & d Adda, Giovanna, 2016. "Gender and Agency within the Household: Experimental Evidence from Pakistan," CEPR Discussion Papers 11464, C.E.P.R. Discussion Papers.
    8. Alistair Munro, 2018. "Intra†Household Experiments: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 134-175, February.
    9. David Boto-García & Petr Mariel, 2024. "How well do couples know their partners’ preferences? Experimental evidence from joint recreation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 41(3), pages 657-686, October.
    10. Cheryl R. Doss & Agnes R. Quisumbing, 2020. "Understanding rural household behavior: Beyond Boserup and Becker," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 47-58, January.
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    12. Matthew K. Gnagey & Therese C. Grijalva & Rong Rong, 2018. "Spousal Dictator Game: Household Decisions and Other-Regarding Preferences," Games, MDPI, vol. 9(3), pages 1-11, September.
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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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