Quotation Greiner, Ben and Ockenfels, Axel and Werner, Peter. 2012. The dynamic interplay of inequality and trust¿An experimental study. Journal of Economic Behavior & Organization 81 (2): S. 355-365.


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Abstract

We study the interplay of inequality and trust in a dynamic growth game, in which trust increases efficiency and thus allows higher growth of the laboratory economy in the future. We find that trust (as measured by the percentage of wealth invested in a trust game) is initially high in a treatment starting with equal endowments, but decreases over time. In a treatment with unequal endowments, trust is initially lower yet more robust. The disparity of wealth distributions across economies mitigates over time. Our findings suggest that both the level and the (exogenous or endogenous) source of inequality matters for the dynamics of trust.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Economic Behavior and Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-A, VW-B, WH-A
Language English
Title The dynamic interplay of inequality and trust¿An experimental study
Volume 81
Number 2
Year 2012
Page from 355
Page to 365
Reviewed? Y
URL http://dx.doi.org/10.1016/j.jebo.2011.11.004
DOI http://dx.doi.org/10.1016/j.jebo.2011.11.004
JEL C92; D31

Associations

People
Greiner, Ben (Details)
External
Ockenfels, Axel (University of Cologne, Germany)
Werner, Peter (University of Cologne, Germany)
Organization
Department of Strategy and Innovation DP (Details)
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