Competition fosters trust

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 76
Issue: 1
Pages: 195-209

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

We study the effects of reputation and competition in a trust game. If trustees are anonymous, outcomes are poor: trustees are not trustworthy, and trustors do not trust. If trustees are identifiable and can, hence, build a reputation, efficiency quadruples but is still at only a third of the first best. Adding more information by granting trustors access to all trusteesʼ complete history has, somewhat surprisingly, no effect. On the other hand, we find that competition, coupled with some minimal information, eliminates the trust problem almost completely.

Technical Details

RePEc Handle
repec:eee:gamebe:v:76:y:2012:i:1:p:195-209
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29