2012-09-01, English, Article, Report edition: Competition fosters trust.(Report) Huck, Steffen; Lunser, Gabriele K.; Tyran, Jean-Robert

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Physical Description
  • Report
  • Magazine/​Journal article
Published
  • Elsevier B.V., 2012 Sept
Language
  • English

Edition details

Title
  • Competition fosters trust.(Report)
Also Titled
  • Competition fosters trust.
Appears In
  • Games and Economic Behavior, v.76, no.1, 2012 Sept, p.195(15) (ISSN: 0899-8256)
Author
  • Huck, Steffen
  • Lunser, Gabriele K.
  • Tyran, Jean-Robert
Published
  • Elsevier B.V., 2012 Sept
Physical Description
  • Report
  • Magazine/​Journal article
Subjects
Target Audience
  • Academic
Summary
  • To link to full-text access for this article, visit this link: http:/​/​dx.doi.org/​10.1016/​j.geb.2012.06.010 Byline: Steffen Huck (a)(b), Gabriele K. Lunser (a)(b), Jean-Robert Tyran (c)(d) Keywords: Competition; Reputation; Trust; Moral hazard; Information conditions Abstract: We study the effects of reputation and competition in a trust game. If trustees are anonymous, outcomes are poor: trustees are not trustworthy, and trustors do not trust. If trustees are identifiable and can, hence, build a reputation, efficiency quadruples but is still at only a third of the first best. Adding more information by granting trustors access to all trusteesE1/4 complete history has, somewhat surprisingly, no effect. On the other hand, we find that competition, coupled with some minimal information, eliminates the trust problem almost completely. Author Affiliation: (a) WZB, Reichpietschufer 50, 10785 Berlin, Germany (b) Department of Economics, University College London, Gower Street, London WC1E 6BT, United Kingdom (c) Department of Economics, University of Vienna, Hohenstaufengasse 9, A-1010 Vienna, Austria (d) Department of Economics, University of Copenhagen, Oster Farimagsgade 5, DK-1353 Copenhagen, Denmark Article History: Received 5 December 2008 Article Note: (footnote) [star] Huck acknowledges financial support from the Economic and Social Research Council (UK) via ELSE and a grant on "Competition and Trust", Lunser acknowledges financial support from the University of Erfurt, Tyran acknowledges financial support from the Department of Economics at the University of Copenhagen.
Terms of Use
  • COPYRIGHT 2012 Elsevier B.V.
Language
  • English
Database
  • Gale Academic OneFile
Identifier
  • 298038650

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