We experimentally examine how group identity affects trust behaviorin an investment game. In one treatment, group identity isinduced purely by minimal groups. In other treatments, group membersare additionally related by outcome interdependence establishedin a prior public goods game. Moving...

Applying an evolutionary framework, we investigate how a reputation mechanism and abuyer insurance (as used on Internet market platforms such as eBay) interact to promote trustworthinessand trust. Our analysis suggests that the costs involved in giving reliable feedbackdetermine the gains from...

Whether incentive contracts perform better than trust in terms of productiveefficiency is usually explored by principal-agent experiments (mostinvolving only one agent). We investigate this issue in the context of athree-person ultimatum experiment, which is simpler and more neutrallyframed than...

We report on a research program that employs the indirect evolutionary approach to analyze how the institutional environment drive the evolution of trust and trustworthiness through the evolution of moral preferences, and how in turn the evolution of preferences shapes the evolution of the...

Evolutionary game theory is often used to analyze the evolution of moral preferences. A few studies also examine the co-evolution of preferences and an institutional aspect of the environment. Allowing the adaption of just one institutional aspect such as litigation or legal insurance to...