Trust under Financial Distress - An Experimental Study

A new version is accepted for publication at Journal of Behavioral and Experimental Economics with title 'Does Trust Break Even? A Trust-Game Experiment with Negative Endowments'

Posted: 24 Nov 2021 Last revised: 17 Jan 2023

See all articles by Sascha Füllbrunn

Sascha Füllbrunn

Radboud University Nijmegen - Institute for Management Research

Jana Vyrastekova

Radboud University Nijmegen - Department of Economics

Date Written: November 24, 2021

Abstract

The experimental literature on trust game experiments is quite extensive. Those studies consider situations in which trustors and trustees starting with a positive endowment might become even wealthier when Trust and Trustworthiness pay off. We contrast such a situation with a treatment in which subjects start under financial distress such that only Trust and Trustworthiness can help them escape a financial loss. We find higher Trust in such an environment in comparison to the established design. We find no severe difference in Trustworthiness.

Keywords: Trust Game, Investment Game, Experiment, Loss, Reciprocity

JEL Classification: C72, C91

Suggested Citation

Füllbrunn, Sascha and Vyrastekova, Jana, Trust under Financial Distress - An Experimental Study (November 24, 2021). A new version is accepted for publication at Journal of Behavioral and Experimental Economics with title 'Does Trust Break Even? A Trust-Game Experiment with Negative Endowments', Available at SSRN: https://ssrn.com/abstract=3970473 or http://dx.doi.org/10.2139/ssrn.3970473

Sascha Füllbrunn (Contact Author)

Radboud University Nijmegen - Institute for Management Research ( email )

Heyendaalseweg 141
Nijmegen, 6525 AJ
Netherlands

HOME PAGE: http://www.ru.nl/english/people/fullbrunn-s/

Jana Vyrastekova

Radboud University Nijmegen - Department of Economics ( email )

Nijmegen, 6500 HK
Netherlands

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
359
PlumX Metrics