Trust, inequality and the market

Shaun P. Hargreaves Heap, Jonathan H. W. Tan, Daniel John Zizzo*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

23 Citations (Scopus)

Abstract

This article examines, experimentally, whether inequality affects the social capital of trust in non-market and market settings. We consider three experimental treatments, one with equality, one with inequality but no knowledge of the income of other agents, and one with inequality and knowledge. Inequality, particularly when it is known, has a corrosive effect on trusting behaviours in this experiment. Agents appear to be less sensitive to known relative income differentials in markets than they are in the non-market settings, but trust in markets appears generally more vulnerable to the introduction of inequality than in the non-market setting.

Original languageEnglish
Article numberN/A
Pages (from-to)311-333
Number of pages23
JournalTHEORY AND DECISION
Volume74
Issue number3
DOIs
Publication statusPublished - Mar 2013

Keywords

  • FAIRNESS
  • Income inequality
  • Trust
  • Market
  • Social capital

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