Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 140: Does stake size matter in trust games?

Olof Johansson-Stenman (), Minhaj Mahmud () and Peter Martinsson ()
Additional contact information
Olof Johansson-Stenman: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Minhaj Mahmud: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Peter Martinsson: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

Abstract: In a trust game conducted in rural Bangladesh, the proportion of money sent decreased significantly with the stake size. Still, even with very large stakes few followed the conventional economic prediction and sent nothing.

Keywords: Trust; trust game; stake size; social capital; field experiment

JEL-codes: C93; Z13

8 pages, August 8, 2004

Note: Published in Economics Letters, 2005, Vol. 88, p p. 365-369.

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