Intention-based reciprocity and signaling of intentions

Many experiments find that trust intentions are a key determinant of prosociality. If intentions matter, then prosociality should depend on whether trust intentions can be credibly conveyed. This conjecture is formalized and tested in a noisy trust game where I vary the extent to which trust can be credibly signaled. I find that the introduction of noise threatens the onset of trust relations and induces players to form more pessimistic beliefs. Therefore policies that increase transparency of the decision-making environment may foster prosociality. However, the potential impact of such policies could be limited by a large heterogeneity in how individuals respond to changes in their information environment