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Is mistrust self-fulfilling?

By Ernesto Reuben, Paola Sapienza and Luigi Zingales

Abstract

We study experimentally the effect of expectations on whether trust is repaid. Subjects respond with untrustworthy behavior if they see that little is expected of them. This suggests that guilt aversion plays an important role in the repayment of trust.Trust Trustworthiness Reciprocity Guilt aversion

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