Trust Game

The trust game, introduced by Berg, Dickhaut, and McCabe in 1995 (and often called the investment game), is a two-player exchange that operationalizes interpersonal trust and reciprocity in money. An investor receives an endowment and may send any portion to an anonymous trustee; the experimenter multiplies the transfer (typically tripling it); the trustee then decides how much, if any, to return. Standard game theory with purely self-interested players predicts the investor should send nothing because a selfish trustee returns nothing -- yet investors reliably send substantial amounts and trustees reliably return some, contradicting the narrow self-interest prediction. Because the amount sent cleanly measures trust and the amount returned measures trustworthiness, the paradigm became a workhorse in social psychology, behavioral economics, and neuroscience for studying social preferences and cooperation between strangers.