We test the hypothesis that cooperative membership is a trust and trustworthiness reinforcing device and that, as such, it affects (in a trust game) both trustors' and trustees' transfers and beliefs. In considering trust games played by sugar farmers in the Philippines, we find that (i)...

This paper investigates behavior in the Traveler's Dilemma game and isolates deviations from textbook predictions caused by differences in welfare perceptions and strategic miscalculations. It presents the results of an experimental analysis based on a 2x2 design where the own and the other...