TY  - RPRT
        AU  - Nguyen, Quang
AU  - Villeval, Marie Claire
AU  - Xu, Hui
        TI  - Trust and Trustworthiness under the Prospect Theory: A Field Experiment in Vietnam
        PY  - 2012/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6851
        UR  - https://www.iza.org/index.php/publications/dp6851
        AB  - We study the influence of risk and time preferences on trust and trustworthiness by conducting a field experiment in Vietnamese villages and by estimating the parameters of the Cumulative Prospect Theory and of quasi-hyperbolic time preferences. We find that while probability sensitivity or risk aversion do not affect trust, loss aversion influences trust indirectly by lowering the expectations of return. Also, more risk averse and less present biased participants are found to be trustworthier. The experience of receiving remittances influences behavior and a longer exposure to a collectivist economy tend to reduce trust and trustworthiness.
        KW  - risk preferences
KW  - time preferences
KW  - Cumulative Prospect Theory
KW  - Vietnam
KW  - trustworthiness
KW  - trust
KW  - field experiment
        ER  -