Learning Trust

Bohnet, Iris; Harmgart, Heike; Huck, Steffen; Tyran, Jean‐Robert

doi:10.1162/jeea.2005.3.2-3.322

Cited by 35 publications

(27 citation statements)

References 8 publications

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“…22 If the distance coefficient captures information frictions, and if the PowerSeller mechanism were to be effective, then we would expect a smaller distance coefficient for transactions undertaken by PowerSellers. 22 Bohnet et al (2005), using laboratory experiments, argued that an important ingredient of well-functioning markets prone to moral hazard is not only buyers learning about sellers but also sellers learning about other sellers. As predicted, we find that distance affects non-PowerSellers more.…”

Section: ] E B a Y A N D T H E D E A T H O F D I S T A N C Ementioning

confidence: 99%

“…21 See eBay's website for more details here: http://pages.eBay.com/sellerinformation/sellingresources/ powerseller.html. 22 Bohnet et al (2005), using laboratory experiments, argued that an important ingredient of well-functioning markets prone to moral hazard is not only buyers learning about sellers but also sellers learning about other sellers. eBay's feedback mechanism could thus facilitate exchanges through both these mechanisms.…”

Section: ] E B a Y A N D T H E D E A T H O F D I S T A N C Ementioning

confidence: 99%

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There Goes Gravity: eBay and the Death of Distance

Lendle¹,

Olarreaga

Schropp

et al. 2016

Econ J

161

109

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We compare the effect of geographic distance on eBay and total international trade flows. We consider the same 61 countries and basket of goods for both types of transactions. We find the effect of distance to be on average 65% smaller on eBay. We argue this difference is due to a reduction in search costs; it increases with product differentiation and is higher when trade partners speak different languages, when corruption in the exporting country is high and when uncertainty avoidance is high in the importing country. Moreover, eBay's seller-rating technology further reduces the distance effect on eBay.2 Comtrade data are collected from national customs offices and include total trade flows, which may include eBay and other online trade flows. We, therefore, use the term 'Total' to describe Comtrade trade data. While the share of online trade in total trade during our study period is unknown, we can assume that it is below 8%, the share of e-commerce in US retail sales in 2012 according to Forrester-Research (2013). 3 Hortac ßsu et al. (2009) do provide international evidence using MercadoLibre, another online market, though it only covers 12 Latin American countries.Additional Supporting Information may be found in the online version of this article: Data S1.

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Section: ] E B a Y A N D T H E D E A T H O F D I S T A N C Ementioning

confidence: 99%

Section: ] E B a Y A N D T H E D E A T H O F D I S T A N C Ementioning

confidence: 99%

There Goes Gravity: eBay and the Death of Distance

Lendle¹,

Olarreaga

Schropp

et al. 2016

Econ J

161

109

View full text Add to dashboard Cite

show abstract

“…We have chosen the amount specified to be paid back in the case that E fulfils trust in a way that makes the pay‐offs asymmetric. Symmetric payments may encourage fulfilling trust for reasons of fairness, rather than because E does what is expected of her (for example see Bacharach et al (2001), Bohnet and Huck (2004) and Bohnet et al (2005)).…”

Section: Experimental Designmentioning

confidence: 99%

Measuring People’s Trust

Ermisch

Gambetta²,

Laurie

et al. 2009

Journal of the Royal Statistical Society Series A: Statistics in Society

145

107

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Summary.We measure trust and trustworthiness in British society with a newly designed experiment using real monetary rewards and a sample of the British population. The study also asks the typical survey question that aims to measure trust, showing that it does not predict 'trust' as measured in the experiment. Overall, about 40% of people were willing to trust a stranger in our experiment, and their trust was rewarded half of the time. Analysis of variation in the trust behaviour in our survey suggests that trusting is more likely if people are older, their financial situation is either 'comfortable' or 'difficult' compared with 'doing alright' or 'just getting by', they are a homeowner or they are divorced, separated or never married compared with those who are married or cohabiting. Trustworthiness also is more likely among subjects who are divorced or separated relative to those who are married or cohabiting, and less likely among subjects who perceive their financial situation as 'just getting by' or 'difficult'. We also analyse the effect of attitudes towards risks on trust.

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“…Fukuyama (1995), Knack and Keefer (1997), Zak and Knack (2001), Beugelsdijk et al . (2004) and Bohnet et al . (2005).…”

Section: Introductionmentioning

confidence: 96%

“…At the social level there is much evidence that trust between people reduces transaction costs, fosters cooperation and is hence important for economic and social development; see e.g. Fukuyama (1995), Knack and Keefer (1997), Zak and Knack (2001), Beugelsdijk et al (2004) and Bohnet et al (2005). Easterly and Levine (1997) showed that, in terms of an ethnolinguistic fractionalization index, the degree of ethnic diversity can explain much of the observed cross-country differences in pro-growth policies and political stability.…”

Section: Introductionmentioning

confidence: 99%

Trust and Religion: Experimental Evidence from Rural Bangladesh

2009

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Trust is measured using both survey questions and a trust experiment among a random sample of Muslim and Hindu household heads in rural Bangladesh. We found no significant effect of the social distance between Hindus and Muslims in the trust experiment in terms of the proportions sent or returned. However, the survey responses do indicate significant differences. Here Hindus, the minority, trust other people less in general, while Hindus trust Muslims more than Muslims trust Hindus.

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Learning Trust

Cited by 35 publications

References 8 publications

There Goes Gravity: eBay and the Death of Distance

There Goes Gravity: eBay and the Death of Distance

Measuring People’s Trust

Trust and Religion: Experimental Evidence from Rural Bangladesh

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