Foundations and Trends® in Microeconomics > Vol 10 > Issue 3

Trust and Reciprocity

Gary Charness, University of California, Santa Barbara, USA, charness@econ.ucsb.edu Valentin Shmidov, University of California, Santa Barbara, USA, shmidov@econ.ucsb.edu
 
Suggested Citation
Gary Charness and Valentin Shmidov (2014), "Trust and Reciprocity", Foundations and TrendsĀ® in Microeconomics: Vol. 10: No. 3, pp 167-207. http://dx.doi.org/10.1561/0700000065

Published: 10 Nov 2014
© 2014 G. Charness and V. Shmidov
 
Subjects
 
Keywords
C70 game theoryC91 laboratory experimentsC93 field experimentsD03 behavioral microeconomicsD60 welfare economics
TrustReciprocityHuman behaviorPreferencesExperiments
 

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In this article:
1. Introduction
2. Games Testing Trust and Reciprocity
3. Social Preferences
4. Trust
5. Trustworthiness
6. Reciprocal Behavior and Reciprocity
7. Conclusion
References

Abstract

This survey explores the contributions of behavioral economics, laboratory experiments, and field experiments to our understanding of the economics of trust, trustworthiness, and reciprocal behavior. A general summary presenting the evolution of trust and reciprocity, departing from pure self-interest in the understanding of "homo economicus", begins the discussion. Next, an exploration of the games and academic contributions that isolate preferences (including social preferences, altruism, inequality aversion, and guilt aversion) from pledges of trust and from reciprocal behavior provides a foundation for behavior that is often misidentified as trust or conditional upon the actions of another. The survey concludes with a summary of theory and experiments that have identified trust and reciprocity in economics and human behavior.

DOI:10.1561/0700000065
ISBN: 978-1-60198-882-9
58 pp. $50.00
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ISBN: 978-1-60198-883-6
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Table of contents:
1. Introduction
2. Games Testing Trust and Reciprocity
3. Social Preferences
4. Trust
5. Trustworthiness
6. Reciprocal Behavior and Reciprocity
7. Conclusion
References

Trust and Reciprocity

Trust and Reciprocity explores the contributions of behavioral economics, laboratory experiments, and field experiments to our understanding of the economics of trust, trustworthiness, and reciprocal behavior. The monograph begins with a general summary presenting the evolution of trust and reciprocity, departing from pure self-interest in the understanding of "homo economicus". Next, an exploration of the games and academic contributions that isolate preferences (including social preferences, altruism, inequality aversion, and guilt aversion) from pledges of trust and from reciprocal behavior provides a foundation for behavior that is often misidentified as trust or conditional upon the actions of another. The monograph concludes with a summary of theory and experiments that have identified trust and reciprocity in economics and human behavior.

 
MIC-065