Showing 1 - 7 of 7
In a laboratory-controlled environment we provide experimental evidence on the effects of transparency (complete over incomplete information) and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent). We implement a simple two-person investment...
Persistent link: https://www.econbiz.de/10010699611
In a laboratory-controlled environment characterized by uncertainty and incomplete information we provide experimental evidence on the effects of transparency and empowerment on trust (investment by a principal) and trustworthiness (reciprocal behavior of an agent) in a simple two-person...
Persistent link: https://www.econbiz.de/10010583807
Using data from a laboratory-controlled environment we analyze the decisions of principals to veto the allocations of grossed-up investments proposed by their agents in a modified trust game. We also analyze the changes in the surplus associated with the introduction of empowerment and the...
Persistent link: https://www.econbiz.de/10010940822
This experimental study explores how communication influences efficiency, trust and trustworthiness in a small group when one member is left out of communication. To study this problem, we introduce a novel three-player trust game where player 1 can send any portion of his endowment to player 2....
Persistent link: https://www.econbiz.de/10008528460
This paper uses laboratory mechanism design in an investment environment to examine the impact of empowering investors with the right to veto the investee’s profit distribution decision on the level of trust and trustworthiness. One of the key findings is that the empowerment of investors...
Persistent link: https://www.econbiz.de/10008531401
trustworthiness in one-shot interactions. In addition, repeated interaction increases trust and reciprocity with or without …
Persistent link: https://www.econbiz.de/10005245041
Prior experimental studies provide evidence that the levels of trust and reciprocity are highly susceptible to … trustworthiness. We use the Berg et al. (1995) investment game to generate indices of trust and reciprocity. Prior to their … treatments in the analysis of the trust and reciprocity data. In addition to these preference related variables, gender is …
Persistent link: https://www.econbiz.de/10005245044