Publisher:
The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx), Nottingham
Abstract:
The "grammar of trust" is one the most explored loci in game theory and behavioural economics. However, still much needs to be understood about the nature of trust in non-enforceable, personalised interactions, in markets and within organizations. This experimental study aims at contributing to the understanding of new dimensions of trust by exploring how risky and vulnerable trust may foster a trustee´s behavioural change. It investigates trustee´s positive reciprocity when the intentional vulnerability of the trustor is both manifestly salient and dependent upon the trustee´s revealed type. The results support the transformative nature of risky trust by showing the capacity of vulnerable trust to generate more fairness and reciprocity in untrustworthy people.