This paper uses data from a controlled laboratory environment to study the impact of transparency (i.e., complete information versus incomplete information) and repeated interactions on the level of trust and trustworthiness in an investment game setting. The key findings of the study are that...

Prior experimental studies provide evidence that the levels of trust and reciprocity are highly susceptible to individuals' preferences towards payoffs, prior experience, capacity to learn more about personal characteristics of each other and social distance. The objective of this study is to...

This paper uses laboratory mechanism design in an investment environment to examine the impact of empowering investors with the right to veto the investee's profit distribution decision on the level of trust and trustworthiness. One of the key findings is that the empowerment of investors...

An investment game is used to generate indices of trust and reciprocity from 182 young adults. The raw data indicate that men are more trusting than women and responders return a larger share of their resources to more trusting senders than to less trusting senders. Sex differences do not...