Factors affecting behaviour of the participants in the trust game

Abstract

In this paper the effect of various factors on the behaviour of participants in the trust game under uncertainty was examined. Numerous experiments have shown that the behaviour of investors and receivers, as well as the results of the investment games themselves, differ greatly from the results predicted by the standard economic theory based on the assumption of rational self-interests. The main purpose of this research was to experimentally determine the influence of gender and risk preferences on the trust and consequently, on the amount of investor's offer. In addition, the aim of the research was to determine the influence of the social value orientation on the receivers' decision to respond irrationally (in the meaning of economic theory) to the given trust. The results of the experiment indicate that investors, even under uncertainty and risk aversion, showed a high level of trust, which was largely rewarded by the receiver.

Keywords

• The trust game
• trust
• investment
• risk
• social value orientation