Do negative random shocks affect trust and trustworthiness?

Article


Bejarano, H., Gillet, J. and Rodriguez-Lara, I. 2018. Do negative random shocks affect trust and trustworthiness? Southern Economic Journal. 85 (2), pp. 563-579. https://doi.org/10.1002/soej.12302
TypeArticle
TitleDo negative random shocks affect trust and trustworthiness?
AuthorsBejarano, H., Gillet, J. and Rodriguez-Lara, I.
Abstract

We report data from a variation of the trust game aimed at determining whether (and how) inequality and random shocks that affect wealth influence the levels of trust and trustworthiness. To tease apart the effect of the shock and the inequality, we compare behavior in a trust game where the inequality is initially given and one where it is the result of a random shock that reduces the second mover’s endowment. We find that first-movers send less to second-movers but only when the inequality results from a random shock. As for the amount returned, second-movers return less when they are endowed less than first-movers, regardless of whether the difference in endowments was initially given or occurred after a random shock.

PublisherWiley
JournalSouthern Economic Journal
ISSN0038-4038
Electronic2325-8012
Publication dates
Online12 Oct 2018
Print14 Nov 2018
Publication process dates
Deposited03 Jul 2018
Submitted01 Jul 2017
Accepted01 Jul 2018
Output statusPublished
Accepted author manuscript
Copyright Statement

This is the peer reviewed version of the following article: Bejarano, H. , Gillet, J. and Rodriguez‐Lara, I. (2018), Do Negative Random Shocks Affect Trust and Trustworthiness?. Southern Economic Journal, 85: 563-579. doi:10.1002/soej.12302, which has been published in final form at https://doi.org/10.1002/soej.12302. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Digital Object Identifier (DOI)https://doi.org/10.1002/soej.12302
Web of Science identifierWOS:000450032400012
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/87v53

Download files


Accepted author manuscript
  • 25
    total views
  • 9
    total downloads
  • 2
    views this month
  • 0
    downloads this month

Export as

Related outputs

When the rich do (not) trust the (newly) rich: experimental evidence on the effects of positive random shocks in the trust game
Bejarano, H., Gillet, J. and Rodriguez-Lara, I. 2024. When the rich do (not) trust the (newly) rich: experimental evidence on the effects of positive random shocks in the trust game. Southern Economic Journal.
Is voting for a cartel a sign of cooperativeness?
Gillet, J. 2021. Is voting for a cartel a sign of cooperativeness? Games. 12 (2), pp. 1-10. https://doi.org/10.3390/g12020048
Trust and trustworthiness after negative random shocks
Bejarano, H., Gillet, J. and Rodriguez-Lara, I. 2021. Trust and trustworthiness after negative random shocks. Journal of Economic Psychology. 86. https://doi.org/10.1016/j.joep.2021.102422
Leadership by example in the weak-link game
Cartwright, E., Gillet, J. and Van Vugt, M. 2013. Leadership by example in the weak-link game. Economic Inquiry. 51 (4), pp. 2028-2043. https://doi.org/10.1111/ecin.12003
Selfish or servant leadership? Evolutionary predictions on leadership personalities in coordination games
Gillet, J., Cartwright, E. and van Vugt, M. 2011. Selfish or servant leadership? Evolutionary predictions on leadership personalities in coordination games. Personality and Individual Differences. 51 (3), pp. 231-236. https://doi.org/10.1016/j.paid.2010.06.003
Cartel formation and pricing: the effect of managerial decision-making rules
Gillet, J., Schram, A. and Sonnemans, J. 2011. Cartel formation and pricing: the effect of managerial decision-making rules. International Journal of Industrial Organization. 29 (1), pp. 126-133. https://doi.org/10.1016/j.ijindorg.2010.03.015
The tragedy of the commons revisited: the importance of group decision-making
Gillet, J., Schram, A. and Sonnemans, J. 2009. The tragedy of the commons revisited: the importance of group decision-making. Journal of Public Economics. 93 (5-6), pp. 785-797. https://doi.org/10.1016/j.jpubeco.2009.02.001