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This paper combines an economic experiment with survey data to investigate determinants of trust and trustworthiness in … the Dutch society. We contrast the inferences which can be made on the trust propensity using stated and revealed measures … and we test for participation bias in our experiment. We find that middle aged and educated individuals trust relatively …
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We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective...
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