The Interplay of Inequality and Reference Dependence with Trust an Experimental Study

7 Pages Posted: 11 Apr 2016

See all articles by Gilles Grolleau

Gilles Grolleau

Montpellier SupAgro and Researcher at LAMETA

Sana El Harbi

University of Sousse

Hayet Saadaoui

University of Sousse

Angela Sutan

Burgundy School of Business - CEREN, ESC Dijon

Date Written: April 2016

Abstract

Using a canonical trust game, we investigate whether the inequality of endowment between trustor and trustee and the acquired versus permanent financial state affect trust and trustworthiness. We found that trust and trustworthiness are reference‐dependent and that individuals with permanent financial state receive more trust and are more trustworthy than others. In our experiment, unequal endowments do not significantly affect trust, but trustworthiness increases significantly when the trustor is poorer.

Keywords: experiment, inequality, reference‐dependence, trust, trustworthiness

JEL Classification: C91

Suggested Citation

Grolleau, Gilles and El Harbi, Sana and Saadaoui, Hayet and Sutan, Angela, The Interplay of Inequality and Reference Dependence with Trust an Experimental Study (April 2016). Bulletin of Economic Research, Vol. 68, Issue 2, pp. 117-123, 2016, Available at SSRN: https://ssrn.com/abstract=2761603 or http://dx.doi.org/10.1111/boer.12049

Gilles Grolleau (Contact Author)

Montpellier SupAgro and Researcher at LAMETA ( email )

France

Sana El Harbi

University of Sousse

rue Abdelaziz el Behi
Sousse, 4000
Tunisia

Hayet Saadaoui

University of Sousse

rue Abdelaziz el Behi
Sousse, 4000
Tunisia

Angela Sutan

Burgundy School of Business - CEREN, ESC Dijon ( email )

29 rue Sambin
Dijon, 21006
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
217
PlumX Metrics