• English
  • Italiano
Schechter, L. (2007). raditional trust measurement and the risk confound: An experiment in rural Paraguay. Journal of Economic Behavior & Organization 62 (2), 272-292

Play in the traditional trust experiment depends both on trust beliefs and on levels of risk aversion. We ran two experiments with a diverse set of subjects in 15 villages of rural Paraguay, the traditional trust experiment and a new experiment measuring only risk aversion. We find that risk attitudes are highly predictive of play in the trust game. In addition, omitting risk aversion as a regressor in trust regressions significantly changes the coefficients of important explanatory variables such as gender and wealth.


Schechter, Laura

Attached content

Upcoming events


Social capital, public participation and democracy

Wed, 2018-09-12 - Fri, 2018-09-14


Networks and Innovation

Thu, 2018-11-15 - Sat, 2018-11-17