Words Speak Louder Than Money

Type of content
Discussion / Working Papers
Publisher's DOI/URI
Thesis discipline
Degree name
Publisher
College of Business and Economics
University of Canterbury. Department of Economics and Finance
Journal Title
Journal ISSN
Volume Title
Language
Date
2011
Authors
Servatka, M.
Tucker, S.
Vadovic, R.
Abstract

Should one use words or money to foster trust of the other party if no means of enforcing trustworthiness are available? This paper reports an experiment studying the effectiveness of two types of mechanisms for promoting trust: a costly gift and a costless message as well as their mutual interaction. We nest our findings in the standard version of the investment game. Our data provide evidence that while both stand-alone mechanisms enhance trust, and a gift performs significantly worse than a message. Moreover, when a gift is combined with sending a message, it can be counterproductive.

Description
This paper is a revision of “Words Speak Louder Than Money” (RePEc Working Paper Number 08/18)
Citation
Servatka, M., Tucker, S., Vadovic, R. (2011) Words Speak Louder Than Money. Department of Economics and Finance. 30pp..
Keywords
communication, content analysis, experimental economics, gift giving, investment game, message, trust, trustworthiness
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Field of Research::14 - Economics
Field of Research::17 - Psychology and Cognitive Sciences::1701 - Psychology::170112 - Sensory Processes, Perception and Performance
Rights