Question 1

Trust and reciprocity

Accepted Answer

A)  Rely on actions, not intention. 
B)  Are equivalent to altruism and kindness. 
C)  Rely on intention, not action. 
D)  Are equivalent to spit and cruelty. 
A)  Rely on actions, not intention. 
B)  Are equivalent to altruism and kindness. 
C)  Rely on intention, not action. 
D)  Are equivalent to spit and cruelty. A

Question 2

Altruism is to a preference for fairness as trust is to reciprocity.

Accepted Answer

A) True 
 B)False  True

Question 3

Contracts are only effective if the punishments for violating the contract are credible and severe enough.

Accepted Answer

A) True 
 B)False  True

Question 4

Social capital refers to relationships an individual has from which they can ask for resources.

Accepted Answer

A) True 
 B)False

Question 5

The tendency to believe sources MORE when carrying information about an individual involved in a trust-destroying event than when the same individual is involved in a trustbuilding event is an example of the confirmation bias only if

Accepted Answer

A)  Our prior hypothesis was that the individual was more prone to build trust than to destroy trust. 
B)  Our prior hypothesis was that the individual was more prone to destroy trust than to build trust. 
C)  Our prior hypothesis was that the source was reliable. 
D)  Our prior hypothesis was that the source was unreliable. 
A)  Our prior hypothesis was that the individual was more prone to build trust than to destroy trust. 
B)  Our prior hypothesis was that the individual was more prone to destroy trust than to build trust. 
C)  Our prior hypothesis was that the source was reliable. 
D)  Our prior hypothesis was that the source was unreliable.

Question 6

Early studies of trust relied on surveys to understand the level of trust people displayed. The popular survey question was "Generally speaking, would you say that most people can be trusted or that you can't be too careful in dealing with people?" What are some of the possible problems in using this as a measure of trust?

Accepted Answer

Answers can include the following: diffe

Question 7

Altruism and fairness are to simultaneous moves games as trust and reciprocity are to sequential move games.

Accepted Answer

A) True 
 B)False

Question 8

Trust and reciprocity fall into the category of "other-regarding preferences" because the act of trust necessarily requires that the trusting individual's pay-off can be directly affected by another individual.

Accepted Answer

A) True 
 B)False

Question 9

Trusting a person involves risk. Therefore, more risk-seeking individuals will always be more trusting.

Accepted Answer

A) True 
 B)False

Question 10

Consider Figure 16.3. Realizing the pay-offs $(1.20,1.20)$ may rely on all of the following notions except

Accepted Answer

A)  Trust. 
B)  Reciprocity. 
C)  Altruism. 
D)  Spite. 
A)  Trust. 
B)  Reciprocity. 
C)  Altruism. 
D)  Spite.

Question 11

There is evidence that acts of trust and distrust are equally weighted by an individual.

Accepted Answer

A) True 
 B)False

Question 12

One of the important by-products of reputation is trust.

Accepted Answer

A) True 
 B)False

Question 13

Why might a trust-destroying event be more prominent when making a decision than a trust-building event?

Accepted Answer

Trust-destroying events tend to be more

Question 14

Which of the following is an example of cheap talk?

Accepted Answer

A)  Two firms sign a contract agreeing to mutually beneficial actions. 
B)  I sign a lease with my landlord agreeing to pay $\$ 500$ on the first of every month. 
C)  I verbally swear in court to tell the truth. 
D)  I promise my mom that I will not go to the party. 
A)  Two firms sign a contract agreeing to mutually beneficial actions. 
B)  I sign a lease with my landlord agreeing to pay $\$ 500$ on the first of every month. 
C)  I verbally swear in court to tell the truth. 
D)  I promise my mom that I will not go to the party.

Question 15

Altruism is to spite as reciprocity is to

Accepted Answer

A)  Opportunism. 
B)  Mistrust. 
C)  Inequity. 
D)  Revenge. 
A)  Opportunism. 
B)  Mistrust. 
C)  Inequity. 
D)  Revenge.

Question 16

Trust refers to a willingness to place others in a position to make decisions that can help or harm you.

Accepted Answer

A) True 
 B)False

Question 17

Without trust

Accepted Answer

A)  All individuals act selfishly 
B)  All individuals must act altruistically. 
C)  Economic transactions become more costly. 
D)  Individuals will act spitefully. 
A)  All individuals act selfishly 
B)  All individuals must act altruistically. 
C)  Economic transactions become more costly. 
D)  Individuals will act spitefully.

Question 18

Which of the following finding does laboratory and empirical evidence support:

Accepted Answer

A)  High social capital causes people to be more trusting. 
B)  Being a trusting person causes people to have higher levels of human capital. 
C)  Being a trustworthy person causes people to have higher levels of human capital. 
D)  There is a strong positive correlation between levels of social capital and trust. 
A)  High social capital causes people to be more trusting. 
B)  Being a trusting person causes people to have higher levels of human capital. 
C)  Being a trustworthy person causes people to have higher levels of human capital. 
D)  There is a strong positive correlation between levels of social capital and trust.

Question 19

Evidence suggests that people who are more trusting are also more trustworthy.

Accepted Answer

A) True 
 B)False

Question 20

Consider a modified version of the trust game. The receiver is now required to return a certain percentage of the sender's money. How does this modification affect our interpretation of the results?

Accepted Answer

We can no longer consider any move by th

Trust and reciprocity

Altruism is to a preference for fairness as trust is to reciprocity.

Contracts are only effective if the punishments for violating the contract are credible and severe enough.

Social capital refers to relationships an individual has from which they can ask for resources.

The tendency to believe sources MORE when carrying information about an individual involved in a trust-destroying event than when the same individual is involved in a trustbuilding event is an example of the confirmation bias only if

Altruism and fairness are to simultaneous moves games as trust and reciprocity are to sequential move games.

Trust and reciprocity fall into the category of "other-regarding preferences" because the act of trust necessarily requires that the trusting individual's pay-off can be directly affected by another individual.

Trusting a person involves risk. Therefore, more risk-seeking individuals will always be more trusting.

Consider Figure 16.3. Realizing the pay-offs $(1.20,1.20)$ may rely on all of the following notions except

There is evidence that acts of trust and distrust are equally weighted by an individual.

One of the important by-products of reputation is trust.

Why might a trust-destroying event be more prominent when making a decision than a trust-building event?

Which of the following is an example of cheap talk?

Altruism is to spite as reciprocity is to

Trust refers to a willingness to place others in a position to make decisions that can help or harm you.

Without trust

Which of the following finding does laboratory and empirical evidence support:

Evidence suggests that people who are more trusting are also more trustworthy.

Consider a modified version of the trust game. The receiver is now required to return a certain percentage of the sender's money. How does this modification affect our interpretation of the results?

Rationality, Irrationality, and Rationalization

Transaction Utility and Consumer Pricing

Mental Accounting

Status Quo Bias and Default Options

The Winners Curse and Auction Behavior

Bracketing Decisions

Representativeness and Availability

Confirmation and Overconfidence

Decision Under Risk and Uncertainty

Prospect Theory and Decision Under Risk or Uncertainty

Disagreeing With Ourselves: Projection and Hindsight Biases

Naïve Procrastination

Committing and Uncommitting

Selfishness and Altruism

Fairness and Psychological Games

Filters

Exam 16: Trust and Reciprocity

Trust and reciprocity

Altruism is to a preference for fairness as trust is to reciprocity.

Contracts are only effective if the punishments for violating the contract are credible and severe enough.

Social capital refers to relationships an individual has from which they can ask for resources.

The tendency to believe sources MORE when carrying information about an individual involved in a trust-destroying event than when the same individual is involved in a trustbuilding event is an example of the confirmation bias only if

Altruism and fairness are to simultaneous moves games as trust and reciprocity are to sequential move games.

Trust and reciprocity fall into the category of "other-regarding preferences" because the act of trust necessarily requires that the trusting individual's pay-off can be directly affected by another individual.

Trusting a person involves risk. Therefore, more risk-seeking individuals will always be more trusting.

Consider Figure 16.3. Realizing the pay-offs (1.20,1.20)(1.20,1.20)(1.20,1.20) may rely on all of the following notions except

There is evidence that acts of trust and distrust are equally weighted by an individual.

One of the important by-products of reputation is trust.

Why might a trust-destroying event be more prominent when making a decision than a trust-building event?

Which of the following is an example of cheap talk?

Altruism is to spite as reciprocity is to

Trust refers to a willingness to place others in a position to make decisions that can help or harm you.

Without trust

Which of the following finding does laboratory and empirical evidence support:

Evidence suggests that people who are more trusting are also more trustworthy.

Consider a modified version of the trust game. The receiver is now required to return a certain percentage of the sender's money. How does this modification affect our interpretation of the results?

Rationality, Irrationality, and Rationalization

Transaction Utility and Consumer Pricing

Mental Accounting

Status Quo Bias and Default Options

The Winners Curse and Auction Behavior

Bracketing Decisions

Representativeness and Availability

Confirmation and Overconfidence

Decision Under Risk and Uncertainty

Prospect Theory and Decision Under Risk or Uncertainty

Disagreeing With Ourselves: Projection and Hindsight Biases

Naïve Procrastination

Committing and Uncommitting

Selfishness and Altruism

Fairness and Psychological Games

Filters

Consider Figure 16.3. Realizing the pay-offs $(1.20,1.20)$ may rely on all of the following notions except