Similarities and Differences When Building Trust: The Role of Cultures

42 Pages Posted: 9 Mar 2010

See all articles by Fabian Bornhorst

Fabian Bornhorst

International Monetary Fund (IMF)

Andrea Ichino

University of Bologna

Oliver Kirchkamp

University of Jena - Economics Department; CESifo (Center for Economic Studies and Ifo Institute)

Karl H. Schlag

University of Vienna - Department of Economics

Eyal Winter

Hebrew University of Jerusalem - Department of Economics

Date Written: February 2010

Abstract

We run an experiment in which students of different European nationalities are matched in groups of five and repeatedly choose with whom within their group they want to play a trust game. Participants observe of each other age, gender, nationality and number of siblings. The region of origin, "North" or "South" is a major determinant of success in the experiment. Participants tend to trust those they trusted before and who trusted them. We do not find evidence of regional discrimination per se. It is only the underlying and significant differences in behavior that translate through repeated interactions into differences in payoffs between the two regions.

Keywords: European regions, experiments, Trust, trustworthiness

JEL Classification: C91, C92, Z13

Suggested Citation

Bornhorst, Fabian and Ichino, Andrea and Kirchkamp, Oliver and Schlag, Karl H. and Winter, Eyal, Similarities and Differences When Building Trust: The Role of Cultures (February 2010). CEPR Discussion Paper No. DP7717. Available at SSRN: https://ssrn.com/abstract=1567279

Fabian Bornhorst (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Andrea Ichino

University of Bologna ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy
+39 349 5965919 (Phone)

Oliver Kirchkamp

University of Jena - Economics Department ( email )

Carl-Zeiss-Str. 3
Jena, 07737
Germany

HOME PAGE: http://www.kirchkamp.de/

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.kirchkamp.de/

Karl H. Schlag

University of Vienna - Department of Economics ( email )

Oskar-Morgenstern-Platz 1
Vienna, A-1090
Austria

Eyal Winter

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 2 658 4154 (Phone)
+972 2 651 3681 (Fax)

HOME PAGE: http://www.ma.huji.ac.il/%7Emseyal/

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