Several recent theories in behavioral game theory seek to explain the behavior of subjects in experimental bargaining games. These models can be partitioned into two classes: outcome-based and intention-based. Outcome-based models treat the intentions that players attribute to one another as unnecessary for predicting behavior. Intention-based approaches, and in particular the trust and reciprocity (TR) hypothesis, rely on this attribution of intentions in an essential way. We report laboratory data from simple two-person trust games which is inconsistent with outcome-based models, but predicted by the trust and reciprocity hypothesis.
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management