We examine gender differences in trust in another party?s cooperation (CC) or its ability (AC). While men and women do not differ concerning trust in cooperation, gender has a strong influence when trust in another subject?s ability is required.

We analyze an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a large and positive effect of endogenous...