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Trust and Risk Revisited
2014
Social Science Research Network
A trustor faces a risky choice in the trust game when he acts upon his belief regarding the chances of betrayal by the trustee. Despite intensive research there is no clear evidence for a link between lottery risk preferences and risk involved in trusting others. We argue that this is due to crucial differences between the risk measurements in the two settings. Trusting is giving up control to a human while lottery risk arises from a mechanistic randomization device. We propose a risky trust
doi:10.2139/ssrn.2524281
fatcat:brinjcvvj5bidf5yzwiyzmh3ci