Ernesto Reuben

Is Mistrust Self-Fulfilling?

Coauthor(s): Paola Sapienza, Luigi Zingales.

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Abstract:

We study experimentally the effect of expectations on whether trust is repaid. Subjects respond with untrustworthy behavior if they see that little is expected of them. This suggests that guilt aversion plays an important role in the repayment of trust.

The final version of this article can be found at http://dx.doi.org/10.1016/j.econlet.2009.04.007.

Source: Economics Letters
Exact Citation:
Reuben, Ernesto, Paola Sapienza, and Luigi Zingales. "Is Mistrust Self-Fulfilling?" Economics Letters 104, no. 2 (August 2009): 89-91.
Volume: 104
Number: 2
Pages: 89-91
Date: 8 2009