Abstract

http://ssrn.com/abstract=1138575
 
 

References (25)



 
 

Citations (45)



 


 



Understanding Trust


Paola Sapienza


Northwestern University - Kellogg School of Management - Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Anna Toldra


Universidad Carlos III de Madrid

Luigi Zingales


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); University of Chicago - Polsky Center for Entrepreneurship; European Corporate Governance Institute (ECGI)

September 2007

CEPR Discussion Paper No. DP6462

Abstract:     
Several papers study the effect of trust by using the answer to the World Values Survey (WVS) question "Generally speaking, would you say that most people can be trusted or that you can't be too careful in dealing with people?" to measure the level of trust. Glaeser et al. (2000) question the validity of this measure by showing that it is not correlated with senders' behaviour in the standard trust game, but only with his trustworthiness. By using a large sample of German households, Fehr et al. (2003) find the opposite result: WVS-like measures of trust are correlated with the sender's behaviour, but not with its trustworthiness. In this paper we resolve this puzzle by recognizing that trust has two components: a belief-based one and a preference based one. While the sender behaviour's reflects both, we show that WVS-like measures capture mostly the belief-based component, while questions on past trusting behaviour are better at capturing the preference component of trust.

Number of Pages in PDF File: 34

Keywords: Trust, trust game, trustworthiness

JEL Classification: G10, G30, Z10

working papers series


Date posted: June 5, 2008  

Suggested Citation

Sapienza, Paola and Toldra, Anna and Zingales, Luigi, Understanding Trust (September 2007). , Vol. , pp. -, 2007. Available at SSRN: http://ssrn.com/abstract=1138575

Contact Information

Paola Sapienza (Contact Author)
Northwestern University - Kellogg School of Management - Department of Finance ( email )
Evanston, IL 60208
United States
847-491-7436 (Phone)
847-491-5719 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Anna Toldra
Universidad Carlos III de Madrid ( email )
Calle Madrid 126
28903 Getafe
Spain
Luigi Zingales
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-3196 (Phone)
773-834-2081 (Fax)

Chicago Booth School of Business Logo

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
University of Chicago - Polsky Center for Entrepreneurship
Chicago, IL 60637
United States
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Feedback to SSRN


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Abstract Views: 322
Downloads: 2
References:  25
Citations:  45

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