The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States

33 Pages Posted: 13 Sep 2010

See all articles by Iris Bohnet

Iris Bohnet

Harvard University - Harvard Kennedy School (HKS)

Benedikt Herrmann

University of Nottingham - School of Economics

Mohamad Al-Ississ

The American University in Cairo

Andrea Robbett

Middlebury College - Department of Economics

Khalid Al-Yahia

Dubai School of Government

Richard J. Zeckhauser

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: June 17, 2010

Abstract

To trust is to risk. When we lend someone money, we make ourselves vulnerable, hoping or expecting that the borrower will reward our trust and return the money at a later stage, possibly with interest or a reciprocal favor added. This paper examines whether willingness to trust follows the same logic, that is, whether it responds to changes in the expected value of trusting, much like willingness to take risk responds to changes in the expected value of risk taking in various countries of the Arab Middle East, namely, Jordan, Saudi Arabia and the United Arab Emirates and in the United States.

Keywords: trust, leadership, conflict resolution, microeconomics, MIddle East

Suggested Citation

Bohnet, Iris and Herrmann, Benedikt and Al-Ississ, Mohamad and Robbett, Andrea and Al-Yahia, Khalid and Zeckhauser, Richard J., The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States (June 17, 2010). HKS Working Paper No. RWP10-031, Available at SSRN: https://ssrn.com/abstract=1676290 or http://dx.doi.org/10.2139/ssrn.1676290

Iris Bohnet (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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Benedikt Herrmann

University of Nottingham - School of Economics ( email )

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Mohamad Al-Ississ

The American University in Cairo ( email )

P.O. Box 2511
Cairo
Egypt

Andrea Robbett

Middlebury College - Department of Economics ( email )

Warner Hall
Middlebury, VT 05753
United States

Khalid Al-Yahia

Dubai School of Government

Dubai World Trade Center
13th Floor Convention Tower, P.O. Box 72229
Dubai
United Arab Emirates

Richard J. Zeckhauser

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
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United States
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617-384-9340 (Fax)

National Bureau of Economic Research (NBER) ( email )

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