When the rich do (not) trust the (newly) rich: Experimental evidence on the effects of positive random shocks in the trust game.
We study behavior in a trust game where first‐movers initially have a higher endowment than second‐movers but the occurrence of a positive random shock can eliminate this inequality by increasing the endowment of the second‐mover before the decision of the first‐mover. We find that second‐movers ret...
| Published in: | Southern Economic Journal Vol. 92; no. 2; pp. 434 - 470 |
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| Main Authors: | , , |
| Format: | Article |
| Published: |
Wiley-Blackwell
Oct2025
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=189364881&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 189364881 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Oct2025 vid: 92 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 189364881 10.1002/soej.12758 ppf: 434 ppct: 36 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 4.1MB tig: atl: When the rich do (not) trust the (newly) rich: Experimental evidence on the effects of positive random shocks in the trust game. aug: au: Bejarano, Hernan Gillet, Joris Rodriguez‐Lara, Ismael affil: Center of Economics Research and Teaching, Economics Division (CIDE), Mexico City, Mexico Economic Science Institute (ESI), Chapman University, Orange California,, USA Resource Economics Department, University of Massachusetts, Amherst Massachusetts,, USA Department of Accounting, Finance and Economics, Middlesex University, London, UK Departamento de Teoría e Historia Económica, Universidad de Málaga, Málaga, Spain su: Trust Information asymmetry Reciprocity (Psychology) Behavioral economics sug: subj: Trust Information asymmetry Reciprocity (Psychology) Behavioral economics keyword: endowment heterogeneity luck random shocks trust game endowment heterogeneity luck random shocks trust game ab: We study behavior in a trust game where first‐movers initially have a higher endowment than second‐movers but the occurrence of a positive random shock can eliminate this inequality by increasing the endowment of the second‐mover before the decision of the first‐mover. We find that second‐movers return less (i.e., they are less trustworthy) when they have a lower endowment than first‐movers, compared with the case in which first and second‐movers have the same endowment. In addition, second‐movers who experience the positive shock return more than second‐movers who have the same endowment as the first‐mover from the outset. First‐movers do not seem to anticipate this behavior from second‐movers. They send less to second‐movers who benefited from a shock. Our findings suggest that in addition to the distribution of the endowments the source of this distribution plays an important role in determining the levels of trust and trustworthiness. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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