The Trust Game Behind the Veil of Ignorance: A Note on Gender Differences
CentER Discussion Paper No. 2005-96
14 Pages Posted: 28 Sep 2005
Date Written: August 11, 2005
We analyze gender differences in the trust game in a behind the veil of ignorance design. This method yields strategies that are consistent with actions observed in the classical trust game experiments. We observe that, on averge, men and women do not differ in trust, and that women are slightly more trustworthy. However, men's strategies are bimodal, peaking at the subgame perfect Nash equilibrium and the Pareto efficient frontier, while women's strategies are single peaked at moderate tranfers. Moreover, if a man [woman] exhibits low trust, he [she] is likely to be a money-maximizer [a risk or betrayal averse reciprocator].
Keywords: Gender differences, trust game, experiment, strategy method behind the veil of ignorance
JEL Classification: C72, C91
Suggested Citation: Suggested Citation