The dynamic interplay of inequality and trust—An experimental study

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2012
Volume: 81
Issue: 2
Pages: 355-365

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 interplay of inequality and trust in a dynamic growth game, in which trust increases efficiency and thus allows higher growth of the laboratory economy in the future. We find that trust (as measured by the percentage of wealth invested in a trust game) is initially high in a treatment starting with equal endowments, but decreases over time. In a treatment with unequal endowments, trust is initially lower yet more robust. The disparity of wealth distributions across economies mitigates over time. Our findings suggest that both the level and the (exogenous or endogenous) source of inequality matters for the dynamics of trust.

Technical Details

RePEc Handle
repec:eee:jeborg:v:81:y:2012:i:2:p:355-365
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25