This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It … of the discount factor above which perfect risk sharing is self-enforcing. When agents face no aggregate risk, there is … of idiosyncratic and aggregate risk. In the case of exponential (isoelastic) utility, cooperation depends positively on …

cogent evidence on the relationship between trust and risk in "trust" games. Subjects in our experiment participate either in …The relationship between trust and risk is a topic of enduring interest. Although there are substantial differences … in the widely-used "trust game" actually measure trust, or instead reveal more about risk attitudes. It is critical to …