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Do people trust more when they are happy or when they are sad? Evidence from an experiment
Author(s) -
Saadaoui Hayet,
El Harbi Sana,
Ibanez Lisette
Publication year - 2019
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3008
Subject(s) - incentive , dictator game , social psychology , psychology , mechanism (biology) , negative emotion , microeconomics , economics , philosophy , epistemology
This paper deals with the role played by incidental emotions on trust decisions. Based on a laboratory experiment with monetary incentives, we explore the way positive and negative emotions impact transfers in a trust game. In addition, we investigate the mechanism through which risk intervenes in the relationship between emotions and trust. Our results suggest that negative emotions influence trust positively, whereas positive emotions decrease trust. This effect disappears once risk is included to the game. Furthermore, we found that transfer in the trust game is driven by other‐regarding preferences and by risk preferences.