Trust is vital yet vulnerable in economic exchange relations. In these relations, a widely used strategy in response to distributive harm consists of having the transgressor pay a financial compensation to the victim. This research examines whether financial compensations can increase trust...

Indirect reciprocity is cooperation through reputation: third parties cooperate with those known to cooperate and defect against those known to defect. Defection, then, can have the unjust motive of greed or the just motive of retaliation. To establish cooperation, observers should distinguish...