Foundations of social life: trust and trustworthiness

Transcription

1 Foundations of social life: trust and trustworthiness Given by D. Gambetta Tuesdays, 11:00-13:00, Seminar Room 4, Badia Fiesolana Open to: all researchers, visiting students, MW fellows and other research fellows at EUI Topic: Trust matters in a wide range of interactions in which individuals would gain from cooperation, but (i) in which cooperation is threatened by opportunistic behaviour, and (ii) there is no third party enforcement such as that provided by the state, to guarantee transactions. In the first part, this course covers the properties of trust, the types and sources of trustworthiness, and introduces different ways of measuring trust and trustworthiness (1,2,3). Next, it presents how trust decisions are shaped by information (4, 5). Third, it shows how trust can emerge despite all odds among criminals and insurgents (6, 7), and how it is (counter-intuitively) affected by conflict (8). The last two classes deal with the interaction between trust and state enforcement, and trust and ethnic diversity (9,10). Requirements for credits: short response papers discussing each week s readings, active participation in every class; some may be asked to give a class presentation esp. in weeks 8-9 Wk Date Title Description 1 2 Oct Trust DG: Game theoretic definition; Trust components: beliefs, risk attitudes, betrayal aversion. Trust properties: asymmetries of motives, of test, of resilience. Links with notion of cooperation and other kindred notions 2 9 Oct Trustworthiness 3 16 Oct Measures 4 23 Oct Trust and information I 5 30 Oct Trust and information II 6 6 Nov Trust and conflict 7 13 Nov Trust among criminals 8 20 Nov Trust and Networks DG: What makes people trustworthy: genetic kin; self-interest; reciprocity; pro-social dispositions e.g. fairness; social norms Sergio Lo Iacono (EUI): Survey and behavioural measures of trust and trustworthiness, advantages/disadvantages of each and how they can be combined. DG: How do we discover whether someone is trustworthy? How do we persuade others that we are trustworthy? We use signalling theory even if we do not know DG: Experimental evidence on trust decisions with and without information Krzysztof Krakowski (EUI): We examine how experience of intergroup conflict affects trust within and across groups. We explore whether the effect of conflict on trust varies between perpetrators of violence (combatants) and its victims (civilians). DG: How can criminals cooperate with each other given that they cannot trust each other? Lessons from the extreme of distrust Sergio Lo Iacono (EUI): Social networks can generate different reputational structures within a community, shaping trusting and trustworthy behaviours in various ways. We will focus on three main mechanisms: learning, control and spill-over effects. 1

2 9 27 Dec Trust and Family Background Sergio Lo Iacono (EUI): Sometimes where we are coming from is more important than where we are now. We review the literature on family background and trust, focusing on the role of geographical and social mobility Dec Trust and ethnicity Krzysztof Krakowski (EUI): We examine whether ethnic diversity undermines levels of trust in the society. Do we distrust people of different ethnicities? And if so, why? Are some ethnicities more trustful than others? Readings Required Readings Week 1, 2 Oct Trust Bacharach and Gambetta, Trust in Signs, in K.Cook (ed), Trust in Society. Sections: Introduction and Primary trust ( ) Coleman J. Foundations of social theory, chapter 5 (chapter 8, optional) Gambetta, Can we trust trust, in Gambetta (ed), Trust. Making and Breaking Cooperative Relations Luhman N. Familiarity, confidence and trust, in Gambetta (ed), Trust. Making and Breaking Cooperative Relations Rousseau, Denise M., Sim B. Sitkin, Ronald S. Burt, and Colin Camerer Not So Different After All: A Cross-Discipline View Of Trust. Academy of management review. 23(3): Oliver E. Williamson: "Calculativeness, Trust and Economic Organization," Journal of Law and Economics, 36 (1), April 1993, Russell Hardin, Trust and Trustworthiness, chapter 1 John Ermisch and Diego Gambetta. Do strong family ties inhibit trust? Journal of Economic Behavior & Organization, 75: , 2010 Kosfeld, M.; Heinrichs, M.; Zak, P. J.; Fischbacher, U.; Fehr, E. (2005). "Oxytocin increases trust in humans". Nature 435 (7042): doi: /nature PMID Required Readings Week 2, 9 Oct - Trustworthiness Dasgupta P. Trust as a commodity, in Gambetta (ed), Trust. Making and Breaking Cooperative Relations 2

3 Russell Hardin, Trust and Trustworthiness, chapter 2 Ernst Fehr, Fairness and Retaliation, The Economics of Reciprocity, Journal of Economic Perspectives 14 (2000), (with S. Gächter) (WS690, GS2399) Annette Baier, Trust, Stanford Encyclopedia of Philosophy Recommended Readings Ernst Fehr, In Search of Homo Economicus Behavioral Experiments in 15 Small Scale Societies. American Economic Review 91 (2001), (with J. Henrich, R. Boyd, S. Bowles, H. Gintis, C. Camerer and R. McElreath) (WS548, GS1566) Zak, P.; Kurzban, R.; Matzner, W. (2005). "Oxytocin is associated with human trustworthiness". Hormones and Behavior 48 (5): doi: /j.yhbeh PMID edit Week 3, 16 Oct Measures (Sergio Lo Iacono) Berg, J., Dickhaut, J., & McCabe, K. (1995). Trust, reciprocity, and social history. Games and economic behavior, 10(1), Glaeser, E. L., Laibson, D. I., Scheinkman, J. A., & Soutter, C. L. (2000). Measuring trust. Quarterly Journal of Economics, Ermisch, J., Gambetta, D., Laurie, H., Siedler, T., & Noah Uhrig, S. C. (2009). Measuring people's trust. Journal of the Royal Statistical Society: Series A (Statistics in Society), 172(4), Sturgis, P., & Smith, P. (2010). Assessing the validity of generalized trust questions: What kind of trust are we measuring?. International journal of public opinion research, 22(1), Cook, K. S., & Cooper, R. M. (2003). Experimental studies of cooperation, trust, and social exchange Trust and Reciprocity, Interdisciplinary Lesson from Experimental Research (pp ). New York: Russell Sage Foundation. Fehr, E., Fischbacher, U., Von Rosenbladt, B., Schupp, J., & Wagner, G. G. (2003). A nationwide laboratory: Examining trust and trustworthiness by integrating behavioral experiments into representative surveys (No. 715). IZA Discussion paper series. Sapienza, P., Toldra Simats, A., & Zingales, L. (2013). Understanding trust. The Economic Journal, 123(573),

4 Week 4, 23 Oct, Trust and information I Bacharach and Gambetta, 2001, Trust in Signs, in K.Cook (ed), Trust in Society. Sections: Secondary trust, p. 154 onward Yamagishi, T Trust as a form of social intelligence. Pp in Karen S. Cook (eds.), Trust in society Gambetta & Hamill, Streetwise. How taxi drivers establish customers trustworthiness. Introduction and conclusions. Densely J., How Gangs Work: An Ethnography of Youth Violent Gangs. MacMillan, chapter 5 Seabright et al. A Model of Smiling as a Costly Signal of Cooperation Opportunities Gambetta, Signalling, in P.Hedstrom and P.Bearman (eds), Handbook of Analytical Sociology Week 5, 30 Oct, Trust and information II Charness, Gary, and Martin Dufwenberg "Promises and Partnership." Econometrica 74(6): Gambetta D, Przepiorka W (2014) Natural and Strategic Generosity as Signals of Trustworthiness. PLoS ONE 9(5): e doi: /journal.pone Fehrler S, Przepiorka W (2013) Charitable giving as a signal of trustworthiness: Disentangling the signaling benefits of altruistic acts. Evol Hum Behav 34: Smith EA, Bliege Bird R (2005) Costly Signaling and Cooperative Behavior. In: Gintis H, Bowles S, Boyd R, Fehr E, editors. Moral Sentiments and Material Interests: On the Foundations of Cooperation in Economic Life, pp MIT Press: Cambridge. Recommended Readings Bolton, Gary E., Elena Katok, and Axel Ockenfels "Trust among Internet Traders." Analyse & Kritik 26(1): Ernest-Jones M, Nettle D, Bateson M (2011) Effects of eye images on everyday cooperative behavior: a field experiment. Evol Hum Behav 32: Gintis H, Smith EA, Bowles S (2001) Costly Signaling and Cooperation. J Theor Biol 213: McCabe, Kevin A., Mary L. Rigdon, and Vernon L. Smith "Positive reciprocity and intentions in trust games." Journal of Economic Behavior & Organization 52(2):

5 Week 6, 6 Nov, Trust and Conflict (Krzysztof Krakowski) Required readings: Nunn, Nathan, and Leonard Wantchekon The Slave Trade and the Origins of Mistrust in Africa. The American Economic Review 101(7), pp Darwin, Charles The Descent of Man, and Selection in Relation to Sex. Princeton: Princeton University Press. Chapter 5, pp Gilligan, Michael J., Benjamin J. Pasquale, and Cyrus Samii Civil War and Social Cohesion: Lab-in-the-Field Evidence from Nepal. American Journal of Political Science 58 (3), pp Pagden, Anthony The Destruction of Trust and its Economic Consequences in the Case of Eighteen-century Naples. In Diego Gambetta (ed.), Trust. Making and Breaking Cooperative Relations. Oxford: Basil Blackwell. Chapter 8, pp Recommended readings: Bauer, Michal, Nathan Fiala, and Ian V. Levely Trusting Former Rebels: An Experimental Approach to Understanding Reintegration after Civil War. The Economic Journal, pp Cassar, Alessandra, Pauline Grosjean, and Sam Whitt Legacies of Violence: Trust and Market Development. Journal of Economic Growth 18 (3), pp Bauer, Michal, Christopher Blattman, Julie Chytilová, Joseph Henrich, Edward Miguel, and Tamar Mitts Can War Foster Cooperation? Journal of Economic Perspectives 30(3), pp Bowles, Samuel Did Warfare Among Ancestral Hunter-Gatherers Affect the Evolution of Human Social Behaviors? Science 324(5932), pp Week 7, 13 Nov, Trust among criminals Required reading Gambetta, Codes of the Underworld. How Criminals Communicate. Chapters 1,2,3 Jonathan Lusthaus, Trust in the world of cybercrime. Global Crime, 2012, 13 (2) Recommended reading Eric Uslaner, Trust and Corruption, in J.Lambsdorff et al. (eds.) The New Institutional Economics of Corruption, 2004 Gambetta, The Sicilian Mafia, chapters 1 and 4 Gambetta and Reuter, Conspiracy among the many: the mafia in legitimate industries, in Gianluca Fiorentini and Sam Peltzman (eds.), The Economics of Organised Crime 1996 CUP Week 8, 27 Nov, Trust and Networks (Sergio Lo Iacono) Bracht, J., & Feltovich, N. (2009). Whatever you say, your reputation precedes you: Observation and cheap talk in the trust game. Journal of Public Economics, 93(9),

6 Buskens, V., Raub, W., & van der Veer, J. (2010). Trust in triads: An experimental study. Social Networks, 32(4), Di Cagno, D., & Sciubba, E. (2010). Trust, trustworthiness and social networks: Playing a trust game when networks are formed in the lab. Journal of Economic Behavior & Organization, 75(2), Glanville, J. L., Andersson, M. A., & Paxton, P. (2013). Do social connections create trust? An examination using new longitudinal data. Social Forces, 92(2), Recommended readings: Buskens, V., & Raub, W. (2002). Embedded trust: Control and learning. In Advances in group processes (pp ). Emerald Group Publishing Limited. Iacono, S. L. (2018). Does community social embeddedness promote generalized trust? An experimental test of the spillover effect. Social Science Research, 73, Putnam, R. (2000) Bowling Alone: The Collapse and Revival of American Community. New York: Simon and Schuster. Week 9, 4 Dec, Trust and Family Background (Sergio Lo Iacono) Dinesen, P. T. (2012). Parental transmission of trust or perceptions of institutional fairness: generalized trust of non-western immigrants in a high-trust society. Comparative Politics, 44(3), Dohmen, T., Falk, A., Huffman, D., & Sunde, U. (2011). The intergenerational transmission of risk and trust attitudes. The Review of Economic Studies, 79(2), Li, Y., Savage, M., & Warde, A. (2008). Social mobility and social capital in contemporary Britain. The British journal of sociology, 59(3), Uslaner, E. M. (2008). Where you stand depends upon where your grandparents sat: The inheritability of generalized trust. Public opinion quarterly, 72(4), Daenekindt, S. (2017). The experience of social mobility: Social isolation, utilitarian individualism, and social disorientation. Social Indicators Research, 133(1), Helliwell, J. F., Wang, S., & Xu, J. (2016). How durable are social norms? Immigrant trust and generosity in 132 countries. Social Indicators Research, 128(1), Required Readings Week 10, 11 Dec, Trust and Ethnicity (Krzysztof Krakowski) 6

7 Abascal, M., & Baldassarri, D. (2015). Love Thy Neighbor? Ethnoracial Diversity and Trust Reexamined. American Journal of Sociology, 121(3), Habyarimana, James, Macartan Humphreys, Daniel N. Posner, and Jeremy M. Weinstein. (2007). Why Does Ethnic Diversity Undermine Public Goods Provision? American Political Science Review 101 (4): Simpson, B., McGrimmon, T., & Irwin, K. (2007). Are Blacks Really Less Trusting than Whites? Revisiting the Race and Trust Question. Social Forces, 86(2), Fearon, James D., and David D. Laitin. (1996). Explaining Interethnic Cooperation. The American Political Science Review 90 (4): Meer, T. van der, & Tolsma, J. (2014). Ethnic Diversity and Its Effects on Social Cohesion. Annual Review of Sociology, 40(1), Putnam, R. D. (2007). E Pluribus Unum: Diversity and Community in the Twenty-First Century the 2006 Johan Skytte Prize Lecture. Scandinavian Political Studies, 30(2),