Trustworthiness can be conveyed by sending a costly signal in advance. In an experiment, we find that the smaller the percentage of trustworthy people in a group, the higher is their percentage of signaling. The introduction of signaling has strong distributional effects. It may be efficient...

Coleman (1990) describes 'calculative trust'. He states that, in order to trust, the value of trust has to be larger than the value of mistrust. So if subjects have (not personally but on average) rational expectations about the trustworthiness of their transaction partners, we should expect the...

Experimental Economics has experienced a steadily growing interest by economists during the last decade. This may not surprise since laboratory and field experiments obviously provide a further valuable source of empirical evidence of economic behavior besides statistics, econometrics, polls,...

The connection of economic theory and behavior is one of the central topics of this book - and also a central issue in economic thinking of Horst Todt to whom this book is dedicated. The contributions deal with topics of normative and descriptive decision-making: They investigate, for instance,...