Market interactions, trust and reciprocity.

ABSTRACT: Trust is a key ingredient of almost all market interactions. Much of the literature on the relationship between trust and market activity, however, has focused on how trust facilitates market activity rather than on how market activity affects trust. In this study, however, we investigate whether market interactions can affect the subsequent trusting and reciprocating behavior of former trading partners. Additionally, we explore the effect of personal and impersonal exchange on the trusting and reciprocating behavior of former trading partners. We find experimental evidence that suggests that positive and negative market interactions can affect such behavior. Further, we find that past market dealings only affect the trusting and reciprocating behavior of subjects who participated in an ex

SUBMITTER: Choi GS 

PROVIDER: S-EPMC7205303 | biostudies-literature | 2020

REPOSITORIES: biostudies-literature