The value of vulnerability: the transformative capacity of risky trust

Bruni, Luigino; Tufano, Fabio

Abstract

In an experimental gift-exchange game, we explore the# transformative capacity of vulnerable trust, which we define as trusting untrustworthy players when their untrustworthiness is common knowledge between co-players. In our experiment, there are two treatments: the “Information” treatment and the “No-Information” treatment in which we respectively disclose or not information about trustees’ trustworthiness. Our laboratory evidence consistently supports the transformative capacity of trustors’ vulnerable trust, which generates higher transfers, more trustworthiness and increased reciprocity by untrustworthy trustees.

Citation

Bruni, L., & Tufano, F. (in press). The value of vulnerability: the transformative capacity of risky trust. Judgment and Decision Making, 12(4),

• Journal Article Type: Article
• Acceptance Date: Jul 14, 2017
• Online Publication Date: Jul 31, 2017
• Deposit Date: Sep 5, 2017
• Publicly Available Date: Sep 5, 2017
• Journal: Judgment and Decision Making
• Print ISSN: 1930-2975
• Electronic ISSN: 1930-2975
• Publisher: Society for Judgment and Decision Making
• Peer Reviewed: Peer Reviewed
• Volume: 12
• Issue: 4
• Keywords: experiment, gift-exchange game, organization, trust, vulnerability
• Public URL: https://nottingham-repository.worktribe.com/output/874932
• Publisher URL: http://journal.sjdm.org/17/17101/jdm17101.pdf