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This paper reports on an experiment studying the effectiveness of two types of mechanisms for promoting trust: pecuniary and non-pecuniary as well as their mutual interaction. Our data provide evidence that both mechanisms significantly enhance trust in comparison to the standard investment...
Persistent link: https://www.econbiz.de/10005111041
Should one use words or money to foster trust of the other party if no means of enforcing trustworthiness are available? This paper reports an experiment studying the effectiveness of two types of mechanisms for promoting trust: a costly gift and a costless message as well as their mutual...
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cooperation behavior and we provide evidence on the microfoundation of this relation. We run a large-scale public goods experiment … over the internet in Denmark using a design that enables us to disentangle preferences for cooperation from beliefs about … others cooperation. We find that the standard trust question is a proxy for cooperation preferences rather than beliefs about …
Persistent link: https://www.econbiz.de/10011344859
Under weak contract enforcement the trading parties’ trust, defined as their belief in other’s trustworthiness, appears important for realizing gains from trade. In contrast, under strong contract enforcement beliefs about other’s trustworthiness appear less important, suggesting that...
Persistent link: https://www.econbiz.de/10012510645
We study the robustness of reputation management systems against distortions in rating behavior. In a laboratory trust experiment with reputation management, we mimic a positive bias by exclusively offering the option to rate positively or to give no rating. As predicted by theoretical...
Persistent link: https://www.econbiz.de/10012197593
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communication technology sector (ICT), and substantial investments are made in such collaborations. Significant rationales for these …
Persistent link: https://www.econbiz.de/10011435907
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