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information on the surplus created. Recent field experiments, however, suggest that trust and reciprocity may be lower or absent … information in a “bilateral gift exchange” setting. We find that trust and reciprocity have a significant positive effect on wages …
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limit individuals' range of trading partners. This paper aims at understanding the determinants of trust at various social … increase in trust following a reduction in social distance comes from the fact that trustors are much more inclined to follow … trust is mainly driven by social preferences. Nevertheless, trustors underestimate their friend's intrinsic motivation to …
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We analyze the effects of introducing asymmetric information andexpectations in the investment game (Berg et al., 1995). In our experiment,only the trustee knows the size of the surplus. Subjects’expectations about each other’s behavior are also elicited. Our resultsshow that average payback...
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The information asymmetries inherent in credence goods have typically led economists to conclude these markets require well-defined quality standards and third-party verification that producers are meeting those standards. Nonetheless, many producers of credence goods appear to be opting out of...
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