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While strong social ties help individuals cope with missing institutions, trade is essentially limited to those who are part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a member of a given social network (a friend), by...
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cooperation between these two. Interestingly, there is an external effect of insider communication: the first player who is … among three players. The baseline treatment with no communication shows that the first and second players send significant … amounts and the third player reciprocates. Allowing insider communication between the second and the third players increases …
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