Frith, Uta;
Frith, Chris;
Frith, Alex;
(2022)
Reputation matters.
The Psychologist
, 35
(6)
pp. 34-38.
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Abstract
Uta Frith and Chris Frith spoke at the Royal Institution around the launch of their ‘graphic biography’ Two Heads, written with their son Alex Frith and illustrated by Daniel Locke. We are going to give you a pot of money. You can give as much (or as little) as you like to us. Then we’re going to triple the amount you gave us and give it to someone else. They can give as much (or as little) from the pot back to us, and this time we’ll triple the amount and give it to you. What do you do? This is the Trust Game, developed by accounting professor Joyce Berg. Giving away money advertises that you are a trustworthy person, but you take the risk that the other player in this game simply takes the money and runs. Because of this risk, classic economic theory predicts that you would keep the money, particularly if you are player two. So what actually happened? Berg and others have found only about 11 per cent of player ones give no money. In fact, most player ones give more than half of what they have, and most player twos are even more generous. It seems more important for players to advertise they are trustworthy than to keep the swag. Why?
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