Is mistrust self-fulfilling?

Reuben, Ernesto and Sapienza, Paola and Zingales, Luigi (2008): Is mistrust self-fulfilling?

Abstract

We study experimentally the effect of expectations on trustworthiness. Most subjects respond with untrustworthy behavior if they find out that little is expected from them. This suggests that guilt aversion plays an important role in inducing trustworthiness.

• Item Type: MPRA Paper
• Language: English
• Keywords: trust; trustworthiness; reciprocity; guilt aversion
• Subjects: C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games

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Reuben, E., Sapienza, P., and Zingales, L. (2008). Is Mistrust Self-fulfilling? Supplementary Material. Mimeo.