Are individuals who trust others better off than those who do not? Do trustworthy people prosper more than untrustworthy ones? We first pose these questions in a search model where individuals face repeated choices between trusting (initiating an investment transaction) and not trusting, and...

Are individuals who trust others better off than those who do not? Do trustworthy people prosper more than untrustworthy ones? We formulate, and, using data from the World Values Survey, empirically evaluate predictions about the relationship between an individual's income and his self-reported...