Bauernschuster, Stefan Falck, Oliver Große, Niels Daniel
Year of Publication:
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Social Preferences No. E13-V3
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.
trust reciprocity investment game group membership competition