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
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