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Related Experiment Video

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The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm

The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm

Published on: October 20, 2022

Market interactions, trust and reciprocity.

Ginny Seung Choi¹, Virgil Henry Storr^1,2

¹F.A. Hayek Program for Advanced Study in Philosophy, Politics and Economics, Mercatus Center at George Mason University, Fairfax, VA, United States of America.

|May 8, 2020

Summary

Market interactions shape future trust and reciprocity. Positive exchanges increase trust in personal markets, while impersonal markets show no change in trust based on past interactions.

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Area of Science:

Behavioral Economics
Social Psychology
Game Theory

Background:

Existing research emphasizes how trust facilitates market activity.
Limited understanding exists on how market interactions influence subsequent trust and reciprocity.

Purpose of the Study:

To investigate if market interactions affect trusting and reciprocating behavior.
To explore the differential impact of personal versus impersonal exchange on trust.

Main Methods:

Experimental design involving trading partners in distinct market settings.
Manipulation of interaction history (positive/negative) within personal and impersonal exchange contexts.

Main Results:

Positive and negative market interactions significantly influence subsequent trusting and reciprocating behavior.
Past market dealings affected behavior only in personal exchange markets.
Impersonal exchange markets showed no difference in trust/reciprocity based on prior interactions.

Conclusions:

The nature of market exchange (personal vs. impersonal) is critical in mediating the impact of interaction history on trust.
Personal interactions foster a stronger link between past experiences and future trust/reciprocity.