An experimental investigation of trust and reciprocity in double-shot investment games
by Rupali Misra; Puneeta Goel
International Journal of Economics and Business Research (IJEBR), Vol. 21, No. 2, 2021

Abstract: When there are multiple interactions between two individuals, trust and reciprocal behaviour are guided by the plausible cost of risking future collaborations. However, in case of single transaction, there is no risk of retaliation. We examine this through two investment experiments - the original Berg et al. (1995) investment game and a modified version which emulates a protocol to capture trust and reciprocal behaviour of paired subjects through double interactions. Double interaction subjects display higher level of trust and reciprocity than single interaction subjects. Women are more strategic than men and are more trusting and trustworthy. Reciprocity is also identified as a determinant of trust. Another important contribution of the study is importance of recent behaviour in guiding final reciprocal action. This is the first paper where double-shot interaction has been introduced to study trust and reciprocal behaviour in an experimental setting.

Online publication date: Mon, 22-Feb-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email