A vast literature has investigated the relationship between trust and aggregate economic performance. We investigate … the relationship between individual trust and individual economic performance. We find that individual income is hump …-shaped in a measure of intensity of trust beliefs available in the European Social Survey. We show that heterogeneity of trust …

questions in the context of a trust game by asking participants directly about their notions of cheating. We find that: i) both … parties to a trust exchange have implicit notions of what constitutes cheating even in a context without promises or messages …; ii) these notions are not unique - the vast majority of senders would feel cheated by a negative return on their trust …

Trust beliefs are heterogeneous across individuals and, at the same time, persistent across generations. We investigate … one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that … individuals extrapolate from their own type when forming trust beliefs about the same pool of potential partners - i.e., more …