We document that trust in public institutions--and particularly trust in banks, business and government--has declined … the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial … over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in …

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 … business imposes negative externalities on the society and society chooses to demand more state regulation and tolerate …

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 …