Trust, Reciprocity, and a Preference for Economic Freedom: Experimental Evidence

Abstract

Abstract: Do those who prefer economic freedom behave differently than those who prefer government intervention? Experiments of the Dictator and Trust games are studied. A survey elicits preference for private solutions to potential market failures. Trust and reciprocation are highest for those who score both high and low on the assessment. In the Dictator Game, there is a strong inverse relationship between one's preference for economic freedom and giving. Thus, the results can be interpreted as those with a strong preference for government intervention altruistically give, while those with a preference for economic freedom give primarily in response to wealth-generating investments.

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