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Intention-based reciprocity and signaling of intentions

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Many experiments find that trust intentions are a key determinant of prosociality. If intentions matter, then prosociality should depend on whether trust intentions can be credibly conveyed. This conjecture is… Click to show full abstract

Many experiments find that trust intentions are a key determinant of prosociality. If intentions matter, then prosociality should depend on whether trust intentions can be credibly conveyed. This conjecture is formalized and tested in a noisy trust game where I vary the extent to which trust can be credibly signaled. I find that the introduction of noise threatens the onset of trust relations and induces players to form more pessimistic beliefs. Therefore policies that increase transparency of the decision-making environment may foster prosociality. However, the potential impact of such policies could be limited by a large heterogeneity in how individuals respond to changes in their information environment.

Keywords: based reciprocity; intention based; reciprocity signaling; prosociality; signaling intentions

Journal Title: Journal of Economic Behavior and Organization
Year Published: 2017

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