Assigning Intentions when Actions Are Unobservable: The Impact of Trembling in the Trust Game

C-Tier
Journal: Southern Economic Journal
Year: 2006
Volume: 73
Issue: 2
Pages: 307-314

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

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

Abstract

This article reports laboratory experiments investigating behavior in which players may make inferences about the intentions behind others' prior actions based on higher‐ or lower‐accuracy information about those actions. We investigate a trust game with first mover trembling, a game in which nature determines whether the first mover's decision is implemented or reversed. The results indicate that second movers give first movers the benefit of the doubt. However, first movers do not anticipate this response. Ultimately, it appears that subjects are thinking on at least three levels when making decisions: they are concerned with their own material well‐being, the trustworthiness of their counterpart, and how their own actions will be perceived.

Technical Details

RePEc Handle
repec:wly:soecon:v:73:y:2006:i:2:p:307-314
Journal Field
General
Author Count
2
Added to Database
2026-01-25