Munich Personal RePEc Archive

Honesty in the City

Dufwenberg, Martin and Servátka, Maroš and Tarrasó, Jorge and Vadovič, Radovan (2021): Honesty in the City.

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Abstract

Lab evidence on trust games involves more cooperation than conventional economic theory predicts. We explore whether this pattern extends to a field setting where (much like in a lab) we are able to control for (lack of) repeat-play and reputation: cab drivers in Mexico City. We find a remarkably high degree of trustworthiness, also with price-haggling, which is predicted to reduce trustworthiness.

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