Distinguishing trust from risk: An anatomy of the investment game

Journal of Economic Behavior and Organization

Volumn 74, Issue 1-2, 2010, Pages 72-81

  Houser, Daniel ^a   Schunk, Daniel ^b   Winter, Joachim ^c  

^a GEORGE MASON UNIVERSITY   (United States)

^b UNIVERSITY OF ZURICH   (Switzerland)

^c UNIVERSITY OF MUNICH   (Germany)

Author keywords

Investment game; Measurement; Risk attitude; Trust game

Indexed keywords

EID: 77950021237     PISSN: 01672681     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jebo.2010.01.002     Document Type: Article

References (36)

1. Abdellaoui M. Parameter-free elicitation of utility and probability weighting functions. Management Science 46 (2000) 1497-1512
2. Aimone, J., Houser, D., 2008. Betraying Trust: An Experiment. Unpublished manuscript, George Mason University.
3. Ben-Ner A., and Putterman L. Trusting and trustworthiness. Boston University Law Review 81 (2001) 523-551
4. Berg J., Dickhaut J., and McCabe K. Trust, reciprocity, and social history. Games and Economic Behavior 10 (1995) 122-142
5. Bohnet I., Greig F., Herrmann B., and Zeckhauser R. Betrayal aversion: evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States. American Economic Review 98 (2008) 294-310
6. Bohnet I., and Zeckhauser R. Trust, risk and betrayal. Journal of Economic Behavior and Organization 55 (2004) 467-484
7. Camerer C.F. Behavioral Game Theory (2003), Princeton University Press, Princeton
8. Camerer C., and Weigelt K. Experimental tests of a sequential equilibrium reputation model. Econometrica 55 (1988) 1-36
9. Charness G., and Gneezy U. Portfolio choice and risk attitudes: an experiment. Economic Inquiry 48 1 (2010) 133-146
10. Cook K.S., and Cooper R.M. Experimental studies of cooperation, trust, and social exchange. In: Ostrom E., and Walker J. (Eds). Trust and Reciprocity (2003), Russell Sage, New York 209-244
11. Cox J.C. How to identify trust and reciprocity. Games and Economic Behavior 46 (2004) 260-281
12. de Quervain D., Fischbacher U., Treyer V., Schellhammer M., Schnyder U., Buck A., and Fehr E. The neural basis of altruistic punishment. Science 305 (2004) 1254-1258
13. Eckel C., and Wilson R. Is trust a risky decision?. Journal of Economic Behavior and Organization 55 (2004) 447-465
14. Ermisch J., Gambetta D., Laurie H., Siedler T., and Uhrig S.N. Measuring people's trust. Journal of the Royal Statistical Society Series A 172 (2009) 749-769
15. Fehr E. On the economics and biology of trust. Journal of the European Economic Association 7 (2009) 235-266
16. Fehr E., Fischbacher U., von Rosenbladt B., Schupp J., and Wagner G. A nation-wide laboratory: examining trust and trustworthiness by integrating behavioral experiments into representative surveys. Schmollers Jahrbuch 122 (2002) 519-542
17. Fehr E., Kirchsteiger G., and Riedl A. Does fairness prevent market clearing? An experimental investigation. Quarterly Journal of Economics 108 (1993) 437-459
18. Glaeser E., Laibson D., Scheinkman J., and Soutter C. Measuring trust. Quarterly Journal of Economics 115 (2000) 811-846
19. Guiso L., Sapienza P., and Zingales L. The role of social capital in financial development. American Economic Review 94 (2004) 526-556
20. Guiso L., Sapienza P., and Zingales L. Does culture affect economic outcomes?. Journal of Economic Perspectives 20 (2006) 23-48
21. Guiso L., Sapienza P., and Zingales L. Trusting the stock market. Journal of Finance 63 (2008) 2557-2600
22. Hardin R. Trust and Trustworthiness (2002), Russell Sage, New York
23. Hey J.D., and Orme C. Investigating generalizations of expected utility theory using experimental data. Econometrica 62 (1994) 1291-1326
24. Holt C., and Laury S. Risk aversion and incentive effects in lottery choices. American Economic Review 92 (2002) 1644-1655
25. Houser D., Keane M., and McCabe K. Behavior in a dynamic decision problem: an analysis of experimental evidence using a Bayesian type classification algorithm. Econometrica 72 (2004) 781-822
26. Jonckheere A.R. A distribution-free k-sample test against ordered alternatives. Biometrika 41 (1954) 133-145
27. Karlan D.S. Using experimental economics to measure social capital and predict financial decisions. American Economic Review 95 (2005) 1688-1699
28. Knack S., and Keefer P. Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics 112 (1997) 1251-1288
29. Knoch D., Schneider F., Schunk D., Hohmann M., and Fehr E. Disrupting the prefrontal cortex diminishes the human ability to build a good reputation. Proceedings of the National Academy of Sciences of the United States of America 106 49 (2009) 20895-20899
30. Kosfeld M., Heinrichs M., Zak P.J., Fischbacher U., and Fehr E. Oxytocin increases trust in humans. Nature 435 (2005) 673-676
31. La Porta R., Lopez-de-Silanes F., Shleifer A., and Vishny R.W. Trust in large organizations. American Economic Review 87 (1997) 333-338
32. McCabe K., Houser D., Ryan L., Smith V., and Trouard T. A functional imaging study of cooperation in two-person reciprocal exchange. Proceedings of the National Academy of Sciences of the United States of America 98 (2001) 11832-11835
33. Sapienza, P., Toldra, A., Zingales, L., 2007. Understanding trust. NBER Working Paper No. 13387.
34. Schechter L. Traditional trust measurement and the risk confound: an experiment in rural Paraguay. Journal of Economic Behavior and Organization 62 (2007) 272-292
35. Wakker P., and Deneffe D. Eliciting von Neumann-Morgenstern utilities when probabilities are distorted or unknown. Management Science 42 (1996) 1131-1150
36. Zak P., and Knack S. Trust and growth. Economic Journal 111 (2001) 295-321