Rage Against the Machine or Humans?

Delle Foglie LucaPapa StefanoSpagnolo Giancarlo
CEIS Research Paper
We examine how betrayal aversion and ambiguity attitudes influence trust. To disentangle these effects, we use a Trust game and manipulate trustors’ perception of being the intentional recipients of trustees’ betrayal by varying the nature of the latter: a human or a machine that replicates human choices in probability. After confirming that this manipulation does not affect ambiguity attitudes or beliefs about others’ behavior, we find that both factors significantly influence trust. Nonetheless, even when controlling for these attitudes and beliefs, participants exhibit lower trust in humans than in machine. Furthermore, using Noldus’ FaceReader technology to measure emotions during trustors’ decision-making process, we find that participants express greater anger toward human trustees. Our results indicate that both betrayal aversion and ambiguity attitudes play important roles in shaping trust decisions.
 

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Number: 593
Keywords: Ambiguity attitudes,Anger,Betrayal cost,Emotions,FaceReader, Trust game
JEL codes: A13,C91,D03,D64,D90
Volume: 23
Issue: 1
Date: Friday, February 21, 2025
Revision Date: Friday, February 21, 2025