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Does players’ identification affect trust and reciprocity in the lab?

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  • Dubois, D.
  • Willinger, M.
  • Blayac, T.
Abstract
Reputation mechanisms are mainly based on information sharing by traders about private trading experience. Each trader can therefore rely on his own past experience as a trader and on other traders’ past experience. The former is the direct component of the reputation mechanism and the latter the indirect component (Bolton, Katok, & Ockenfels, 2004a, 2004b). We design an experiment for isolating the direct component of the reputation system and studying its effect on the level of trust and reciprocity in a population where agents play both roles (trustor and trustee). Our experiment consists on three treatments of a finitely repeated investment game (Berg, Dickhaut, & McCabe, 1995). In the reference treatment there is no reputation mechanism at all, in treatment 1 trustees can build up a direct reputation, and in treatment two players can build up a direct reputation for both roles. We find that trustees’ direct reputation has a positive effect on reciprocity, but does not affect the average trust in the population. Trust is significantly higher only when players can build up a reputation in both roles. We show that the increase in trust is mainly linked to the formation of mutual trust–reciprocity relations.

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  • Dubois, D. & Willinger, M. & Blayac, T., 2012. "Does players’ identification affect trust and reciprocity in the lab?," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 303-317.
    • Handle: RePEc:eee:joepsy:v:33:y:2012:i:1:p:303-317
    DOI: 10.1016/j.joep.2011.09.012
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    10. David Lucking‐Reiley & Doug Bryan & Naghi Prasad & Daniel Reeves, 2007. "Pennies From Ebay: The Determinants Of Price In Online Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 55(2), pages 223-233, June.
    11. Bolton, Gary E. & Katok, Elena & Ockenfels, Axel, 2005. "Cooperation among strangers with limited information about reputation," Journal of Public Economics, Elsevier, vol. 89(8), pages 1457-1468, August.
    12. Daniel Houser & John Wooders, 2006. "Reputation in Auctions: Theory, and Evidence from eBay," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 353-369, June.
    13. Iris Bohnet & Heike Harmgart & Steffen Huck & Jean-Robert Tyran, 2005. "Learning Trust," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 322-329, 04/05.
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    Cited by:

    1. Weber, Martin & Germann, Maximilian & Loos, Benjamin, 2018. "Trust and Delegated Investing: A Money Doctors Experiment," CEPR Discussion Papers 12984, C.E.P.R. Discussion Papers.
    2. Bogliacino, Francesco & Codagnone, Cristiano, 2021. "Microfoundations, behaviour, and evolution: Evidence from experiments," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 372-385.
    3. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    4. Kas, Judith & Delnoij, Joyce & Corten, Rense & Parigi, Paolo, 2022. "Trust spillovers in the sharing economy: Does international Airbnb experience foster cross‐national trust?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(3), pages 509-522.
    5. Bogliacino, Francesco & Jiménez Lozano, Laura & Grimalda, Gianluca, 2018. "Consultative democracy and trust11We thank Vanessa Carrillo, Jairo Paéz and Daniel Reyes for their help during the experiments. A special thanks to Franci Beltrán, Jairo Paéz and Alfonso Peña for prov," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 55-67.
    6. Bogliacino, Francesco & Grimalda, Gianluca & Jimenez, Laura, 2017. "Consultative Democracy & Trust," MPRA Paper 82138, University Library of Munich, Germany.
    7. Kas, Judith & Corten, Rense & van de Rijt, Arnout, 2022. "The role of reputation systems in digital discrimination," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(4), pages 1905-1932.
    8. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 96, pages 1-1.
    9. Francesco Bogliacino & Laura Jiménez & Gianluca Grimalda, 2015. "Consultative, Democracy and Trust," Documentos de Trabajo, Escuela de Economía 12696, Universidad Nacional de Colombia, FCE, CID.

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    More about this item

    Keywords

    Investment game; Trust; Reciprocity; Population; Experimental economics; Repeated game; Reputation;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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