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Trust and Trustworthiness in a Sequential Bargaining Game

Author

Listed:
  • Chaudhuri, Ananish
  • Khan, Sarah
  • Lakshmiratan, Aishwarya
  • Py, Anne-Laure
  • Shah, Lisa

Abstract

We use a two-person extensive form bargaining game to examine individual's trusting and reciprocal behavior and how those relate to their scores on a trust survey. In keeping with prior research, we find that the 'self-interested' outcome is rejected by a majority of individuals. People who score high on the trust survey are both trusting and are also trustworthy, in that they reciprocate others' trust. But, people with low trust scores often exhibit trust but are not trustworthy. These 'inconsistent trusters' seem to be interested in exploiting the trust and trustworthiness of others in increasing their own payoff.

Suggested Citation

  • Chaudhuri, Ananish & Khan, Sarah & Lakshmiratan, Aishwarya & Py, Anne-Laure & Shah, Lisa, 2003. "Trust and Trustworthiness in a Sequential Bargaining Game," Working Papers 160, Department of Economics, The University of Auckland.
    • Handle: RePEc:auc:wpaper:160
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    File URL: http://hdl.handle.net/2292/160
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    Citations

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    Cited by:

    1. Utteeyo Dasgupta & Arjun Menon, 2011. "Trust and Trustworthiness among Economics Majors," Economics Bulletin, AccessEcon, vol. 31(4), pages 2799-2815.
    2. Chaudhuri, Ananish & Li, Yaxiong & Paichayontvijit, Tirnud, 2016. "What’s in a frame? Goal framing, trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 117-135.
    3. Cam Caldwell & Mark Hansen, 2010. "Trustworthiness, Governance, and Wealth Creation," Journal of Business Ethics, Springer, vol. 97(2), pages 173-188, December.
    4. William English, 2012. "Demystifying trust: Experimental evidence from Cambodia and Thailand," Journal of Theoretical Politics, , vol. 24(2), pages 172-209, April.
    5. Astrid Matthey & Tobias Regner, 2013. "On the independence of history: experience spill-overs between experiments," Theory and Decision, Springer, vol. 75(3), pages 403-419, September.
    6. Banerjee, Ritwik, 2016. "Corruption, norm violation and decay in social capital," Journal of Public Economics, Elsevier, vol. 137(C), pages 14-27.
    7. Ananish Chaudhuri & Lata Gangadharan, 2007. "An Experimental Analysis of Trust and Trustworthiness," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 959-985, April.
    8. Cassar, Alessandra & Rigdon, Mary, 2011. "Trust and trustworthiness in networked exchange," Games and Economic Behavior, Elsevier, vol. 71(2), pages 282-303, March.
    9. Fabian Kleine & Manfred Königstein & Balázs Rozsnyói, 2018. "Voluntary Leadership and Asymmetric Endowments in the Investment Game," Games, MDPI, vol. 9(3), pages 1-21, July.
    10. Rockmann, Kevin W. & Northcraft, Gregory B., 2008. "To be or not to be trusted: The influence of media richness on defection and deception," Organizational Behavior and Human Decision Processes, Elsevier, vol. 107(2), pages 106-122, November.

    More about this item

    Keywords

    Trust; Economics;

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