This paper reports on an experiment studying the effectiveness of two types of mechanisms for promoting trust … enhance trust in comparison to the standard investment game. However, we find that the pecuniary mechanism performs …

While most of the previous literature interprets trust as an action, we adopt a view that trust is represented by a …. In this paper we propose and test a conjecture that economic agents use trust strategically. That is, the agents have … incentives to inflate the perceived level of trust (the signal) in order to induce a more favorable outcome for themselves. In …

Should one use words or money to foster trust of the other party if no means of enforcing trustworthiness are available …? This paper reports an experiment studying the effectiveness of two types of mechanisms for promoting trust: a costly gift … game. Our data provide evidence that while both stand-alone mechanisms enhance trust, and a gift performs significantly …

This paper experimentally investigates the role of beliefs, trust, and risk in shaping cooperative behavior. By … applying incentivized elicitation methods to measure these concepts, we find that beliefs about others’ behavior and trust are …

We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise … to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert …