Inter-ethnic trust and reciprocity: results of an experiment with small businessmen

Abstract We investigate inter-ethnic trust and reciprocity by having subjects from distinct ethnic origins play the trust game [Games Econom. Behav. 10 (1995) 122]. The participants in the experiment are male small businessmen of Turkish or Belgian ethnic origin, all of whom have a business in the same city (Ghent, Belgium). Our main finding is that the average levels of trust and reciprocity are independent of ethnic origin and, moreover, independent of the ethnic origin of the opposite party.

[1]  K. Arrow Gifts and Exchanges , 1982 .

[2]  S. Zamir,et al.  Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study , 1991 .

[3]  J. Landa,et al.  Trust, Ethnicity, and Identity: Beyond the New Institutional Economics of Ethnic Trading Networks, Contract Law, and Gift-Exchange , 1995 .

[4]  E. Fehr,et al.  Psychological Foundations of Incentives , 2002 .

[5]  E. Lazear Culture and Language , 1995, Journal of Political Economy.

[6]  James Coleman,et al.  Introducing Social Structure in Economic Analysis , 1984 .

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

[8]  D. North Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[9]  F. Fukuyama Trust: The Social Virtues and the Creation of Prosperity Penguin London , 1995 .

[10]  P. Zak,et al.  Trust and Growth , 2001 .

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

[12]  A. Greif Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders , 1989, The Journal of Economic History.

[13]  C. Fershtman,et al.  Trust and discrimination in a segmented society: An experimental approach , 2001 .

[14]  T. Schelling The Strategy of Conflict , 1963 .

[15]  A. Greif,et al.  Trust, Ethnicity, and Identity , 1995 .

[16]  A. Morelli Histoire des étrangers et de l'immigration en Belgique: de la préhistoire à nos jours , 1992 .

[17]  John H. Kagel,et al.  Partial Gift Exchange in an Experimental Labor Market: Impact of Subject Population Differences, Productivity Differences, and Effort Requests on Behavior* , 2002, Journal of Labor Economics.

[18]  Stephen F. Knack,et al.  Civic Norms, Social Sanctions, and Voter Turnout , 1992 .

[19]  C. Fershtman,et al.  Discrimination and Nepotism: The Efficiency of the Anonymity Rule , 2002, The Journal of Legal Studies.

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

[21]  R. Boyd,et al.  In Search of Homo Economicus: Behavioral Experiments in 15 Small- Scale Societies , 2001 .

[22]  E. Glaeser,et al.  Are Ghettos Good or Bad? , 1995 .

[23]  Gary S. Becker,et al.  The Economics of Discrimination , 1957 .