The Causal Effect of Market Participation on Trust: An Experimental Investigation Using Randomized Control

Abstract

In randomized control laboratory experiments, we find that those primed to think about markets exhibit more trusting behavior. We randomly and unconsciously prime experimental participants to think about markets and trade. We then ask them to play a trust game involving an anonymous stranger. We compare the behavior of these individuals with that of a group who are not primed to think about anything in particular. Priming for market participation affects positively the beliefs about the trustworthiness of anonymous strangers, increasing trust.

Keywords: trust, markets, institutions, belief, priming

JEL Classification: D02, D23, D64, D84, O12, O43, P10