Fig 1.
Extensive form representation of the two games in the Betrayal Aversion Elicitation Task: a) the Trust Game; b) the Risk-Only Trust Game.
In the Trust game (Risk-Only Trust Game), the first move is made by the investor. If the investor chooses Don't Trust (No Gamble) the game ends and each participant earns $10, otherwise the Trustee makes a choice of Reciprocate or Betray (Nature/Chance determines the outcome). Note the probability that nature/chance chooses “Even” in Game 2 is identical to the actual probability that the investor has of being randomly matched with a trustee who chose “Reciprocate” in Game 1.
Table 1.
Risk Choices and Associated Risk Preferences.
Table 2.
Betrayal Aversion Summary Statistics (averages).
Fig 2.
The figure illustrates the monetary premium each participant reported requiring in order for them to choose to trust a randomly matched trustee counterpart, ordered from the most Betrayal Seeking participant to the most Betrayal Averse.
This premium is calculated as the extra probability required (or sacrificed) in order to trust, compared to the risk game (MAP difference), multiplied by the excess earnings that would result from the expected additional level of reciprocation.
Fig 3.
The figure reflects the proportion of participants falling into each risk preference interval from Table 1, based off of their Eckel Grossman risk task choice.
Fig 4.
Bars reflect average risk choice (and standard error) by betrayal aversion type.
Betrayal Seekers (BS) are those participants who required a premium to take the risk when nature chose the outcome (MAPti < MAPri). Betrayal Averse (BA) participants are those who required a premium to trust when their trustee chose the outcome (MAPti > MAPri). Betrayal Neutral (BN) participants are those who reported identical willingness to take risk whether nature or a trustee chose the outcome (MAPti = MAPri).