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THE INTERPLAY OF INEQUALITY AND REFERENCE DEPENDENCE WITH TRUST AN EXPERIMENTAL STUDY
Author(s) -
Grolleau Gilles,
El Harbi Sana,
Saadaoui Hayet,
Sutan Angela
Publication year - 2016
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12049
Subject(s) - trustworthiness , endowment , affect (linguistics) , inequality , dictator game , economics , state (computer science) , microeconomics , social psychology , econometrics , psychology , political science , computer science , law , mathematics , communication , algorithm , mathematical analysis
Using a canonical trust game, we investigate whether the inequality of endowment between trustor and trustee and the acquired versus permanent financial state affect trust and trustworthiness. We found that trust and trustworthiness are reference‐dependent and that individuals with permanent financial state receive more trust and are more trustworthy than others. In our experiment, unequal endowments do not significantly affect trust, but trustworthiness increases significantly when the trustor is poorer.