We consider repeated trust game experiments to study the interplay between explicit and relational incentives. After …

(must) increase their signaling expenditures. This theoretical prediction is confirmed in our experiment. Second, for … intermediate and high levels of noise, a separating and pooling equilibrium co-exist. In the experiment, subjects tend to shift … that a separating equilibrium ceases to exist for low levels of noise (and an unfavorable prior). Yet in the experiment …