A trust game in the loss domain

14 March 2017 10:58

(updated: 7 September 2017 12:32)

A trust game in the loss domain

The article "A trust game in the loss domain" by Ola Kvaløy, Miguel Luzuriaga and Trond E. Olsen has been published in Experimental Economics.

The article "A trust game in loss domain" by Ola Kvaløy, Miguel Luzuriaga and Trond E. Olsen has been published in Experimental Economics.

Abstract:

In standard trust games, no trust is the default, and trust generates a potential gain. We investigate a reframed trust game in which full trust is default and where no trust generates a loss. We find significantly lower levels of trust and trustworthiness in the loss domain when full trust is default than in the gain domain when no trust is default. As a consequence, trust is on average profitable in the gain domain, but not in the loss domain. We also find that subjects respond more positively to higher trust in the loss domain than in the gain domain.