Is Trust a Risky Decision?
Catherine C. Eckel
Texas A&M University
Rick K. Wilson
Rice University - Department of Political Science
December 1, 2004
Journal of Economic Behavior and Organization, Vol. 55, No. 4, 2004
In a series of laboratory experiments that focus on a two-person sequential, binary trust game, we examine the relationship between risk attitudes and the decision to trust an anonymous partner. Our experiments include two behavioral risk measures and one survey measure of risk attitudes in addition to the trust game. We find no statistical relationship between the behavioral risk measures and the decision to trust. With additional control variables, there is a weak relationship between risk measured from the survey and the decision to trust.
Number of Pages in PDF File: 19
Keywords: Bargaining Games, Trust, Risk Aversion, Laboratory Experiments
JEL Classification: C9, D81, Z13Accepted Paper Series
Date posted: May 17, 2011
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