Short- and long-run effects of external interventions on trust

Asanov, Igor and Vannuccini, Simone (2020) Short- and long-run effects of external interventions on trust. Review of Behavioral Economics, 7 (2). pp. 159-195. ISSN 2326-6198

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We analyze experimentally the effects of external interventions such as subsidy and targeting on investment decisions, during an intervention and after. We employ a multi-period version of the trust (investment) game Berg et al. (1995) introducing either monetary incentives for contribution or providing a suggestion about the level of investment. The results of the experiment indicate that targeting is an effective instrument to promote trustful behavior while subsidy policy is effective in neither the short- or the long-run. Therefore, we suggest a targeting policy should be considered as an instrument to foster trustful behavior.

Item Type: Article
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Subjects: H Social Sciences > HB Economic theory. Demography > HB0131 Methodology > HB0135 Mathematical economics. Quantitative methods Including econometrics, input-output analysis, game theory
Depositing User: Simone Vannuccini
Date Deposited: 29 Jul 2020 07:41
Last Modified: 29 May 2021 01:00

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