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

17 Pages Posted: 3 Oct 2011 Last revised: 6 Mar 2013

See all articles by Omar Al-Ubaydli

Omar Al-Ubaydli

George Mason University - Department of Economics; Derasat; George Mason University - Mercatus Center

Daniel Houser

George Mason University - Department of Economics; Interdisciplinary Center for Economic Science; George Mason University - Mercatus Center

John V. Nye

George Mason University - Department of Economics; Mercatus Center; National Research University Higher School of Economics

Maria Pia Paganelli

Trinity University

Xiaofei Pan

George Mason University - Department of Economics; George Mason University - Interdisciplinary Center for Economic Science (ICES)

Date Written: October 2, 2011

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

Suggested Citation

Al-Ubaydli, Omar and Houser, Daniel and Nye, John V. C. and Paganelli, Maria Pia and Pan, Xiaofei, The Causal Effect of Market Participation on Trust: An Experimental Investigation Using Randomized Control (October 2, 2011). GMU Working Paper in Economics No. 11-38, Available at SSRN: https://ssrn.com/abstract=1937270 or http://dx.doi.org/10.2139/ssrn.1937270

Omar Al-Ubaydli (Contact Author)

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Bahrain

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Daniel Houser

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Maria Pia Paganelli

Trinity University ( email )

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Xiaofei Pan

George Mason University - Department of Economics ( email )

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