Trust and Expected Trustworthiness: Experimental Evidence from Zimbabwean Villages

An economic experiment involving 24 small, tightly knit communities allows us to distinguish between trusting or trust-like behaviour based on expectational and non-expectational motivations. A model linking trusting behaviour to expectations of trustworthiness explains over half of the variation across communities. However, the estimated parameters are different (while being similarly well defined) for traditional and resettled communities. This is taken as evidence that non-expectational motivations are at work and vary with community type. Both the data and certain stylised facts suggest that altruistic motivations matter less and motivations relating to a desire to 'community-build' matter more in resettled communities. Copyright 2003 Royal Economic Society.

[1]  Gary E. Bolton,et al.  ERC: A Theory of Equity, Reciprocity, and Competition , 2000 .

[2]  K. Cook Trust in Society , 2001 .

[3]  V. Smith,et al.  Social Distance and Other-Regarding Behavior in Dictator Games: Reply , 1999 .

[4]  Andrei Shleifer,et al.  Trust in Large Organizations , 1996 .

[5]  M. Bacharach,et al.  Trust in signs. , 2001 .

[6]  T. Yamagishi,et al.  Trust and commitment in the United States and Japan , 1994 .

[7]  D. Levine Modeling Altruism and Spitefulness in Experiments , 1998 .

[8]  K. Singleton,et al.  An omnibus test for the two-sample problem using the empirical characteristic function , 1986 .

[9]  H. White A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity , 1980 .

[10]  B. Frey,et al.  Social Distance and Other-Regarding Behavior in Dictator Games: Comment , 1999 .

[11]  R. Kramer,et al.  Trust in Organizations: Frontiers of Theory and Research , 1995 .

[12]  Joyce E. Berg,et al.  Trust, reciprocity and social history’, Games and Economic Behaviour, . , 1995 .

[13]  Stephen F. Knack,et al.  Does Social Capital Have an Economic Payoff? A Cross-Country Investigation , 1997 .

[14]  R. Zeckhauser Strategy and Choice , 1993 .

[15]  R. Brandis The Limits of Organization , 1975 .

[16]  Diego Gambetta Can We Trust Trust , 2000 .

[17]  A. Eagly,et al.  Gender and Helping Behavior : A Meta-Analytic Review of the Social Psychological Literature , 2004 .

[18]  Blair H. Sheppard,et al.  Business on a handshake , 1992 .

[19]  J. Kagel,et al.  Handbook of Experimental Economics , 1997 .

[20]  W. Hamilton The genetical evolution of social behaviour. I. , 1964, Journal of theoretical biology.

[21]  V. Smith,et al.  Preferences, Property Rights, and Anonymity in Bargaining Games , 1994 .

[22]  Joyce E. Berg,et al.  Trust, Reciprocity, and Social History , 1995 .

[23]  M. Rabin Published by: American , 2022 .

[24]  E. Glaeser,et al.  What is Social Capital? the Determinants of Trust and Trustworthiness , 1999 .

[25]  E. Fehr A Theory of Fairness, Competition and Cooperation , 1998 .

[26]  Blair H. Sheppard,et al.  Micro-OB and the Network Organization , 1996 .

[27]  V. Smith,et al.  Social distance and other-regarding behavior in dictator games , 2000 .

[28]  Steven Durlauf,et al.  Social Capital , 2004 .

[29]  J. Henrich Does culture matter in economic behavior? Ultimatum game bargaining among the machiguenga , 2000 .

[30]  M. Dufwenberg,et al.  Reciprocity and wage undercutting , 2000 .

[31]  D. Collard,et al.  Trust : making and breaking cooperative relations , 1989 .

[32]  Kenneth F. Wallis,et al.  Econometric Implications of the Rational Expectations Hypothesis , 1980 .

[33]  J. Fleck Trust in organizations , 1982 .