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We employ experiments to illustrate one factor contributing to the lack of distrust in the recent corporate scandals: Trust rather than no trust was the default. People are more trusting when the default is full trust than when it is no trust. We introduce a new game, the distrust game (DTG),...
Persistent link: https://www.econbiz.de/10010282774
We experimentally test whether intentional and observable discriminatorypay of symmetric agents in the Winter (2004) game causes lowpaid agents to reduce effort. We control for intentionality of wages byeither allowing a principal to determine wages or by implementing arandom process. Our main...
Persistent link: https://www.econbiz.de/10009022163
's expectation of reciprocity shown to be a key determinant. We use an indeterminate horizon centipede game to establish a feedback …
Persistent link: https://www.econbiz.de/10012056161
We introduce opportunities for pre-play communication and to enter binding or non-binding contracts in trust games, and find (a) communication increases trusting and trustworthiness, (b) contracts are unnecessary for trusting and trustworthy behaviors and are eschewed by many players, (c) more...
Persistent link: https://www.econbiz.de/10010318895
We let subjects interact with anonymous partners in trust (investment) games with and without one of two kinds of pre-play communication: numerical (tabular) only, and verbal and numerical. We find that either kind of pre-play communication increases trusting, trustworthiness, or both, in...
Persistent link: https://www.econbiz.de/10010318961
Although reciprocity is a key concept in the social sciences, it is still unclear why people engage in costly …-reported anger highlights the importance of using both techniques for studying reciprocity. …
Persistent link: https://www.econbiz.de/10010325363
-shared conclusion that cooperation observed in experiments (and its collapse)is mostly driven by imperfect reciprocity. In this study … observed. We are thus driven to the conclusion that egoism is more resistant to exposure to social dilemmas than reciprocity. …
Persistent link: https://www.econbiz.de/10012428595
Previous work has shown that unobservable random shocks on output have a detrimental effect on effort provision in short-term ('static') employment relationships. Given the prevalence of long-term ('dynamic') relationships in firms, we investigate whether the impact of shocks is similarly...
Persistent link: https://www.econbiz.de/10012873010
environment than usually considered in the literature. In fact, positive reciprocity survives in a treatment favoring selfish … reciprocity there is negative reciprocity in this new treatment. Additionally, this paper highlights the influence of the …
Persistent link: https://www.econbiz.de/10005761278
We examine the degree of trust and reciprocity in an experimental trust game with 662 participants from six different … and reciprocity have been identified as fundamental pillars for smooth and efficient economic interactions, economic …. Reciprocity prevails in all age groups, although its degree also seems to increase with age. …
Persistent link: https://www.econbiz.de/10005765128