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2005-09-01 | Peer Reviewed

Does stake size matter in trust games

Johansson-Stenman, O., P. Martinsson, and M. Mahmud. 2005. "Does Stake Size Matter in Trust Games". Economics Letters 88(3): 365-69.
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The proportion of money sent, which is typically assumed to reflect trust, decreased significantly as the stake
size was increased in a trust game conducted in rural Bangladesh.

Nevertheless, even with very large stakes, most senders and receivers sent substantial fractions.