Trust and Reciproicity [sic]: An Experimental Examination of Repeated Play in Trust Games

Rational theory predicts agents act exclusively to maximize their own monetary interest. This model can be inconsistent with observed behavior in experimental games. Rationality has been expanded upon to allow multiple orders of rationality to exist simultaneously allowing for the existence of motivations other than self interest. This study reports the results in two Trust Games designed to further this study. Data from eight experimental treatments involving 44 subjects provides an exploration of the effects of first mover rights on repeated play in a trust game with the same partner. Experimental results indicate behavior is motivated by positive reciprocity. Further, the level of cooperation and reciprocity increases as subjects amass experience with the games and their counterpart\u27s strategies. Predation is observed with a non-zero frequency in Game A. Experimental findings support arguments for ecological rationality