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Decomposing trust and trustworthiness
Authors:Nava Ashraf  Iris Bohnet  Nikita Piankov
Institution:(1) Harvard Business School, Boston;(2) Kennedy School of Government, Harvard University, 79 JFK Street, Cambridge, MA, 02139;(3) Analysis Group, Boston
Abstract:What motivates people to trust and be trustworthy? Is trust solely “calculative,” based on the expectation of trustworthiness, and trustworthiness only reciprocity? Employing a within-subject design, we run investment and dictator game experiments in Russia, South Africa and the United States. Additionally, we measured risk preferences and expectations of return. Expectations of return account for most of the variance in trust, but unconditional kindness also matters. Variance in trustworthiness is mainly accounted for by unconditional kindness, while reciprocity plays a comparatively small role. There exists some heterogeneity in motivation but people behave surprisingly similarly in the three countries studied.
Keywords:Trust  Reciprocity  Social preferences  Cross-cultural experiments
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