When is trust robust?

B-Tier
Journal: Games and Economic Behavior
Year: 2025
Volume: 150
Issue: C
Pages: 34-47

Authors (3)

Anderlini, Luca (Georgetown University) Samuelson, Larry (not in RePEc) Terlizzese, Daniele (not in RePEc)

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 examine an economy in which interactions are more productive if agents can trust others to refrain from cheating. Some agents are scoundrels, who cheat at every opportunity, while others cheat only if the cost of cheating, a decreasing function of the proportion of cheaters, is sufficiently low. The economy exhibits multiple equilibria. As the proportion of scoundrels in the economy declines, the high-trust equilibrium can be disrupted by arbitrarily small perturbations or by arbitrarily small infusions of low-trust agents, while the low-trust equilibrium becomes impervious to perturbations and infusions of high-trust agents. Scoundrels may thus have the effect of making trust more robust.

Technical Details

RePEc Handle
repec:eee:gamebe:v:150:y:2025:i:c:p:34-47
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24