A city-wide experiment on trust discrimination
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Download: BIB_379374F6AE7E.P001.pdf (419.88 [Ko])
State: Public
Version: author
State: Public
Version: author
Serval ID
serval:BIB_379374F6AE7E
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
A city-wide experiment on trust discrimination
Journal
Journal of Public Economics
ISSN
0047-2727
Publication state
Published
Issued date
04/2013
Peer-reviewed
Oui
Volume
100
Pages
15-27
Language
english
Abstract
This paper reports evidence from a city-wide field experiment on trust. About 1000 inhabitants of Zurich take part in a trust experiment, in which first movers can condition their investments on the residential districts of second movers. First movers differentiate their investments systematically depending on where in Zurich the second mover lives. The observed discrimination pattern is robust as indicated by additional data collected in a newspaper study and a laboratory experiment. Economic status seems to be key for a district's reputation: first movers invest more if second movers live in high-income districts. Investments into districts are positively correlated with the corresponding willingness to repay, which indicates that first movers correctly anticipate the relative trustworthiness of inhabitants of different districts. Furthermore, we find that people trust strangers from their own district significantly more than strangers from other districts. This in-group effect is, at least partly, driven by more accurate beliefs about the trustworthiness of in-group members.
Keywords
Trust, Field experiment, Discrimination, In-group effect
Web of science
Create date
27/01/2013 23:38
Last modification date
21/08/2019 6:08