caa a22 4500 606168559 CHVBK 20210128100707.0 cr unu---uuuuu 210128e20150401xx s 000 0 eng 10.1007/s11127-014-0218-7 doi (NATIONALLICENCE)springer-10.1007/s11127-014-0218-7 House money effects on trust and reciprocity [Elektronische Daten] [Daniel Houser, Erte Xiao] In a typical laboratory "Investment Game” experiment, participants' endowments are provided by the experimenter; thus, the worst case for the investor is that she loses all of her "found” money. By contrast, in naturally occurring environments, investment decisions can often lead to a loss of one's own money. This paper investigates whether "trust” found in one-shot anonymous laboratory interaction is robust to "own money” environments. Our results show that, consistent with previous investment game results, most investors send a positive amount, and most trustees return at least the transfer amount, regardless of whether the investors purchase or are gifted their endowment. However, investments are on average lower when participants use their own money, and the fraction of maximum investments (the most "risky” investment decision) is only half as large under "own money” as it is under gifted endowments. Our results explain why one should exercise caution in placing trust in any government's ability to spend other people's money prudently. Springer Science+Business Media New York, 2014 House money nationallicence Investment games nationallicence Experiments nationallicence Houser Daniel Economics Department and Interdisciplinary Center for Economic Science, George Mason University, 4400 University Dr, MSN 1B2, 22030, Fairfax, VA, USA aut Xiao Erte Department of Economics, Monash University, 3800, Clayton, VIC, Australia aut Public Choice Springer US; http://www.springer-ny.com 163/1-2(2015-04-01), 187-199 0048-5829 163:1-2<187 2015 163 11127 https://doi.org/10.1007/s11127-014-0218-7 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s11127-014-0218-7 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Houser Daniel Economics Department and Interdisciplinary Center for Economic Science, George Mason University, 4400 University Dr, MSN 1B2, 22030, Fairfax, VA, USA aut NATIONALLICENCE 700 1- Xiao Erte Department of Economics, Monash University, 3800, Clayton, VIC, Australia aut NATIONALLICENCE 773 0- Public Choice Springer US; http://www.springer-ny.com 163/1-2(2015-04-01), 187-199 0048-5829 163:1-2<187 2015 163 11127