Are risk-tolerant individuals more trustful? A representative sample study

Abstract Based on a representative sample of the French population (n = 1,154), we show that there is a positive association between risk tolerance and trust. We rely on, the World Value Survey WVS binary trust measure, and a ‘0 − 10’ scale that we decline in three domains: trust in general, family , and co-workers . We also vary the measure of risk tolerance, by considering an incentivized investment task, and a ‘0 − 10’ stated preference scale that we decline in three domains: risk tolerance in general , in finance , and health . These variations allow us to test 16 different relations, by crossing four dependent trust variables with four different risk tolerance covariates. After adjusting for multiple testing, we found nine combinations with a strong positive link between risk tolerance and trust in the general population, and that stated risk tolerance measures predict stated trust better than elicited risk measures.