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1 results

  • A trust game in loss domain

  • Ola Kvaløy, Miguel Luzuriaga, Trond E. Olsen
  • Journal:
    Experimental Economics / Volume 20 / Issue 4 / December 2017
    Published online by Cambridge University Press:
    14 March 2025, pp. 860-877

  • In standard trust games, no trust is the default, and trust generates a potential gain. We investigate a reframed trust game in which full trust is default and where no trust generates a loss. We find significantly lower levels of trust and trustworthiness in the loss domain when full trust is default than in the gain domain when no trust is default. As a consequence, trust is on average profitable in the gain domain, but not in the loss domain. We also find that subjects respond more positively to higher trust in the loss domain than in the gain domain.