Location of Repository

68131 MannheimTruth and trust in communication Experiments on the effect of a competitive context

By Entscheidungsverhalten Und, Ökonomische Modellierung and Julian RodeUniversität Mannheim and Julian Rode

Abstract

Abstract: The paper employs laboratory experimentation to study the effect of competition on truth telling and trust in communication. A sequence of either competitive or cooperative interactions preceded an experimental communication game. In the game, informed advisors sent a recommendation to decision-makers who faced uncertainty about the consequences of their choice. While many advisors told the truth against their monetary self-interest, the propensity to tell the truth was unaffected by the contextual priming. In contrast, decision-makers trusted significantly less in a competitive context. The effect was strongest when they faced full uncertainty. The paper relates this result to psychological and neuro-economic findings on automatic information processing. The data of this study were largely in line with Subjective Equilibrium Analysis (Kalai and Lehrer, 1995)

Topics: experimental economics, truth telling, trust, asymmetric information, context effects, competition, automatic information processing, subjective beliefs
Year: 2008
OAI identifier: oai:CiteSeerX.psu:10.1.1.319.1637
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.sfb504.uni-mannheim... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.