Trust is related to people's willingness to accept vulnerability, composed of their willingness to accept the risk of being worse off than if they had never trusted, the risk of being worse off than the trusted party, and the risk of being betrayed by the trusted party. We examine how people's...

Using experiments, we examine whether the decision to trust a stranger in a one-shot interaction is equivalent to taking a risky bet, or if a trust decision entails an additional risk premium to balance the costs of trust betrayal. We compare a binary-choice Trust game with a structurally...

Using experiments, we examine whether the decision to trust a stranger in a one-shot interaction is equivalent to taking a risky bet, or if a trust decision entails an additional risk premium to balance the costs of trust betrayal. We compare a binary-choice Trust game with a structurally...