Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2007:1: Collective Trust Behavior

Håkan Holm () and Paul Nystedt ()
Additional contact information
Håkan Holm: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Paul Nystedt: Department of Economics and Management, Linköping University, Postal: Department of Economics and Management, Linköping University, S-58183 Linköping , Sweden

Abstract: This paper investigates trust in situations, where decision-makers are large groups and the decision-mechanism is collective, by developing a game to study trust behavior. Theories from behavioral economics and psychology suggest that trust in such situations may differ from individual trust. Experimental results here reveal a large difference in trust but not in trustworthiness between the individual and collective setting. Furthermore, an artefactual field experiment captures the determinants of collective trust behavior among two cohorts in the Swedish population. One result is that beliefs about the other and the own group are strongly associated with collective trustworthiness and trust behavior.

Keywords: Collective Trust; Voting; Experiment; Beliefs

JEL-codes: C72; C90; C93; D70

58 pages, December 20, 2006

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