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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/30753
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| Title: | | Can competition spoil reciprocity? A laboratory experiment  |
| Authors: | | Bauernschuster, Stefan Falck, Oliver Große, Niels Daniel |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper 2923 |
| Abstract: | | This paper investigates how group membership and competition among trustors interact with trust and trustworthiness in a laboratory one-shot trust game. To analyze these effects, we apply a 2x2 design. We induce group membership by letting subjects play coordination games with clear focal points, leading to higher investments and trustworthiness. Introducing competition leads to a decrease in trustworthiness, especially among partners. We argue that once competition comes into play, trustees perceive trustors' investments as the outcomes of a competitive bidding process rather than good intentions, which reduces reciprocity. |
| Subjects: | | trust reciprocity investment game group membership competition |
| JEL: | | C92 G11 Z13 L14 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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