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RESEARCH PAPER NO. 875
GENDER DIFFERENCES IN TRUST AND RECIPROCITY
BY
ANANISH CHUADHURI & LATA GANGADHARAN
MARCH 2003
Department of Economics. University of Melbourne. Melbourne Victoria 3010 Australia
We use the
investment game introduced by Berg, Dickhaut and McCabe (1995) to explore
gender differences in trust and reciprocity. In doing so we replicate and
extend the results first reported by Croson and Buchan (1999). We find that men
exhibit greater trust than women do while women show higher levels of
reciprocity. Trusting behavior is driven strongly by expectations of
reciprocation. We posit that the lower levels of trust exhibited by women may
be attributed to a higher degree of risk aversion.
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