Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67292
Authors: 
Nguyen, Quang
Villeval, Marie-Claire
Xu, Hui
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6851
Abstract: 
We study the influence of risk and time preferences on trust and trustworthiness by conducting a field experiment in Vietnamese villages and by estimating the parameters of the Cumulative Prospect Theory and of quasi-hyperbolic time preferences. We find that while probability sensitivity or risk aversion do not affect trust, loss aversion influences trust indirectly by lowering the expectations of return. Also, more risk averse and less present biased participants are found to be trustworthier. The experience of receiving remittances influences behavior and a longer exposure to a collectivist economy tend to reduce trust and trustworthiness.
Subjects: 
trust
trustworthiness
risk preferences
time preferences
Cumulative Prospect Theory
Vietnam
field experiment
JEL: 
C91
C93
D81
D90
O10
O53
Document Type: 
Working Paper

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