The paper studies the link between corruption and social capital (measured as trust), using data from a lab experiment. Subjects play either a harassment bribery game or a strategically identical but differently framed ultimatum game, followed by a trust game. In a second experiment, we elicit...

We estimate the cost of cultural biases in high-stake economic decisions by comparing agents' peer-to-peer lending choices with those the same agents make under the assistance of an automated robo-advisor. We first confirm substantial in-group vs. out-group and stereotypical discrimination,...

The economic success and innovative outcomes of the high performing East Asian countries, albeit often characterized as low-trust societies, suggests reexamination of the presumed positive relationship between social trust and innovation. Multi-level analyses conducted in this paper reveal that...