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Trust, reciprocity, and a preference for economic freedom: experimental evidence

Published online by Cambridge University Press:  11 March 2014

BRYAN C. MCCANNON
BRYAN C. MCCANNON*
Affiliation:
Saint Bonaventure University, Saint Bonaventure, NY, USA
*
*Email: bmccannon@sbu.edu
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Abstract:

Do those who prefer economic freedom behave differently than those who prefer government intervention? Experiments of the Dictator and Trust games are studied. A survey elicits preference for private solutions to potential market failures. Trust and reciprocation are highest for those who score both high and low on the assessment. In the Dictator Game, there is a strong inverse relationship between one's preference for economic freedom and giving. Thus, the results can be interpreted as those with a strong preference for government intervention altruistically give, while those with a preference for economic freedom give primarily in response to wealth-generating investments.

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Type
Research Article
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Journal of Institutional Economics , Volume 10 , Issue 3 , September 2014 , pp. 451 - 470
Copyright
Copyright © Millennium Economics Ltd 2014 

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