Crowding Out Trust: The Adverse Effects of Verification. An Experiment.
Through an experiment, this study investigates the effects that verification has on honest traders. This paper demonstrates that by reducing the scope for trust verification can have a negative effect on the behaviour of honest individuals. Specifically, the analysis shows that trustworthy agents ar...
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| Format: | Working paper |
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Department of Economics (University of Oxford)
2002
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| _version_ | 1797081787135950848 |
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| author | Guerra, G |
| author_facet | Guerra, G |
| author_sort | Guerra, G |
| collection | OXFORD |
| description | Through an experiment, this study investigates the effects that verification has on honest traders. This paper demonstrates that by reducing the scope for trust verification can have a negative effect on the behaviour of honest individuals. Specifically, the analysis shows that trustworthy agents are willing to punish or seek compensation from those that deprive them of trust opportunities through the use of verification. Regulatory implications are discussed. JEL |
| first_indexed | 2024-03-07T01:18:56Z |
| format | Working paper |
| id | oxford-uuid:8fac18a0-577b-4727-ba4d-9c8b68a08487 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T01:18:56Z |
| publishDate | 2002 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:8fac18a0-577b-4727-ba4d-9c8b68a084872022-03-26T23:06:06ZCrowding Out Trust: The Adverse Effects of Verification. An Experiment.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:8fac18a0-577b-4727-ba4d-9c8b68a08487Oxford University Research Archive - ValetDepartment of Economics (University of Oxford)2002Guerra, GThrough an experiment, this study investigates the effects that verification has on honest traders. This paper demonstrates that by reducing the scope for trust verification can have a negative effect on the behaviour of honest individuals. Specifically, the analysis shows that trustworthy agents are willing to punish or seek compensation from those that deprive them of trust opportunities through the use of verification. Regulatory implications are discussed. JEL |
| spellingShingle | Guerra, G Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title | Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title_full | Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title_fullStr | Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title_full_unstemmed | Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title_short | Crowding Out Trust: The Adverse Effects of Verification. An Experiment. |
| title_sort | crowding out trust the adverse effects of verification an experiment |
| work_keys_str_mv | AT guerrag crowdingouttrusttheadverseeffectsofverificationanexperiment |