Competition vs. communication: An experimental study on restoring trust

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2014
Volume: 108
Issue: C
Pages: 94-107

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Trust is fragile. It is hard to build but easy to destroy. In this paper, we explore the fragility of trust in a stylized laboratory environment. We ask whether transgression outside a direct send-and-return relationship destroys trust and, if so, whether a competition against outsiders or an apology for misdeeds helps restore it. We find that transgression significantly reduces trust and that the broken trust can be greatly restored by group competition. Communication via an apology, impersonal or not, has an insignificant impact. By contrast, offering explanations for misbehavior is as effective as group competition.

Technical Details

RePEc Handle
repec:eee:jeborg:v:108:y:2014:i:c:p:94-107
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25