Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2003:6: Tropic Trust versus Nordic Trust: Experimental Evidence from Tanzania and Sweden

Anders Danielson and Hakan J Holm ()
Additional contact information
Anders Danielson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Hakan J Holm: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden

Abstract: Undergraduates in Tanzania and Sweden participated in one Trust game, one Dictator game, and answered a standard set of survey questions relating to trust. In both countries we detected a strong and significant relation between Dictator donations and proportions returned in Trust games, which indicates that unconditional distribution preferences matter in Trust game behaviour. Furthermore, in Sweden evaluations of unrevealed Dictator donations significantly predicted the amount sent in Trust games. The predictive power of survey trust questions differed between countries: in Sweden, but not in Tanzania a plausible relation between survey trust and trust behaviour was found

Keywords: trust; Trust game; reciprocity; altruism; experiments

JEL-codes: C78; C90; D70

50 pages, May 6, 2003

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