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dc.contributor.authorBinzel, Christineen_US
dc.contributor.authorFehr, Dietmaren_US
dc.date.accessioned2010-06-02en_US
dc.date.accessioned2010-07-22T09:28:54Z-
dc.date.available2010-07-22T09:28:54Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/36731-
dc.description.abstractWhile social relationships play an important role for individuals to cope with missing market institutions, they also limit individuals' range of trading partners. This paper aims at understanding the determinants of trust at various social distances when information asymmetries are present. Among participants from an informal housing area in Cairo we find that the increase in trust following a reduction in social distance comes from the fact that trustors are much more inclined to follow their beliefs when interacting with their friend. When interacting with an ex-ante unknown agent instead, the decision to trust is mainly driven by social preferences. Nevertheless, trustors underestimate their friend's intrinsic motivation to cooperate, leading to a loss in social welfare. We relate this to the agents' inability to signal their trustworthiness in an environment characterized by strong social norms.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDiscussion papers // German Institute for Economic Research 1007en_US
dc.subject.jelC72en_US
dc.subject.jelC93en_US
dc.subject.jelD82en_US
dc.subject.jelO12en_US
dc.subject.ddc330en_US
dc.subject.keywordTrusten_US
dc.subject.keywordhidden actionen_US
dc.subject.keywordsocial distanceen_US
dc.subject.keywordsolidarityen_US
dc.subject.keywordreciprocityen_US
dc.subject.keywordeconomic developmenten_US
dc.subject.stwSoziale Beziehungenen_US
dc.subject.stwVertrauenen_US
dc.subject.stwAustauschtheorieen_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwTheorieen_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwKairoen_US
dc.titleSocial relationships and trusten_US
dc.typeWorking Paperen_US
dc.identifier.ppn627234275en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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