SFB 504 discussion paper No. 04-43
How do People Play a Repeated Trust Game? Experimental Evidence
Fabian Bornhorst, Andrea Ichino, Oliver Kirchkamp, Karl H. Schlag, Eyal Winter
We run an experiment in which participants are matched to a group of
five and repeatedly have to choose with whom within their group they
want to play a trust game. Within this group participants observe of
each other age, gender, nationality and number of siblings. We find
that difference in success in the experiment can only be explained
in terms of regional membership, belonging to northern or southern
Europe. Compared to “South”, “North” show more trust in periods
when trust is rewarded with sufficiently high trustworthiness and
show less trustworthiness at the margin apart from the first period.
Differences in behavior that generate higher payoffs-as opposed to
discrimination-explain substantial differences in success between
the two regions.