Is Trust a Risky Decision?

Eckel, Catherine C.; Wilson, Rick K.

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Is Trust a Risky Decision?

Journal of Economic Behavior and Organization, Vol. 55, No. 4, 2004

19 Pages Posted: 17 May 2011

See all articles by Catherine C. Eckel

Rick K. Wilson

Rice University - Department of Political Science

Date Written: December 1, 2004

Abstract

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.

Keywords: Bargaining Games, Trust, Risk Aversion, Laboratory Experiments

JEL Classification: C9, D81, Z13

Suggested Citation: Suggested Citation

Eckel, Catherine C. and Wilson, Rick K., Is Trust a Risky Decision? (December 1, 2004). Journal of Economic Behavior and Organization, Vol. 55, No. 4, 2004, Available at SSRN: https://ssrn.com/abstract=1843473