Trust, risk, and ethnic discrimination in a binary trust game

This study examines the relationship between trust, risk attitudes, and ethnic diversity in a binary trust game using data from the LISS panel of Dutch participants. The findings reveal that trust decisions are primarily influenced by economic incentives and individual risk tolerance, with no evidence of ethnic discrimination when participants are paired with non-Western migrants. These results highlight the importance of accounting for risk attitudes in experimental analyses and emphasize the significant role of economic incentives in shaping trust behaviour.