Abdulkadiroglu, Atila; Bagwell, Kyle - In: American Economic Journal: Microeconomics 5 (2013) 2, pp. 213-59
We study trust, reciprocity, and favors in a repeated trust game with private information. In our main analysis, players are willing to exhibit trust and thereby facilitate cooperative gains only if such behavior is regarded as a favor that must be reciprocated, either immediately or in the...