Exploring Trust Dynamics: Insights from the Trust Game in Social and Economic Interactions

Introduction

Trust is a fundamental aspect of human interaction, influencing relationships, economic transactions, and social cohesion. The dynamics of trust can be complex, shaped by various factors, including individual experiences, cultural backgrounds, and situational contexts. This paper explores the concept of trust within the framework of the Trust Game, a well-established experimental economics tool that sheds light on how trust operates in social and economic interactions. The purpose of this report is to analyze the mechanisms of trust as revealed through the Trust Game and to discuss its implications on broader social and economic behaviors.

The Trust Game and Its Implications

The Trust Game, originally developed by Berg, Dickhaut, and McCabe in 1995, is a two-player game designed to measure the level of trust and reciprocity between individuals. In this game, one player, known as the “trustor,” is given a sum of money and must decide how much to send to a second player, the “trustee.” The amount sent is then tripled by the experimenter, and the tr