Is Mistrust Self-Fulfilling?
Columbia Business School - Management; Institute for the Study of Labor (IZA)
Northwestern University - Kellogg School of Management - Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)
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)
Economics Letters, Vol. 104, No. 2, pp. 89-91, 2009
We study experimentally the effect of expectations on whether trust is repaid. Subjects respond with untrustworthy behavior if they see that little is expected of them. This suggests that guilt aversion plays an important role in the repayment of trust.
Number of Pages in PDF File: 8
Keywords: trust, trustworthiness, reciprocity, guilt aversion, experiment
JEL Classification: C72, C91, Z13Accepted Paper Series
Date posted: October 31, 2011
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