HKS Affiliated Authors
Frank Plumpton Ramsey Professor of Political Economy
Co-Director, Women and Public Policy Program
Albert Pratt Professor of Business and Government
Excerpt
Excerpt
The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States. Iris Bohnet, Mohamad Al-Ississ, Richard Zeckhauser, June 2010, Paper. "To trust is to risk. When we lend someone money, we make ourselves vulnerable, hoping or expecting that the borrower will reward our trust and return the money at a later stage, possibly with interest or a reciprocal favor added. Generally, people are more willing to engage in a risky activity, such as buying a stock or starting a business, the greater the expected returns from the activity. This chapter examines whether willingness to trust follows the same logic..." Link