transmission tends to be biased toward excessively conservative priors. As a result, societies can be trapped in a low-trust … equilibrium. In this context, a temporary shock to the return to trusting can have a permanent effect on the level of trust. We …

In this paper we characterize a situation in which non-calculative trust has to play a role in the decision to …

driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and …

with a low level of trust in government institutions and recognition of high and rising levels of corruption. The findings …

choose with whom within their group they want to play a trust game. Participants observe of each other age, gender …. Participants tend to trust those they trusted before and who trusted them. We do not find evidence of regional discrimination per …

implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …

A vast literature has investigated the relationship between trust and aggregate economic performance. We investigate … the relationship between individual trust and individual economic performance. We find that individual income is hump …-shaped in a measure of intensity of trust beliefs available in the European Social Survey. We show that heterogeneity of trust …