The empathy game: can trust be supported without positive material reciprocity?

The authors introduce a modified version of the Trust Game of Berg et al. (1995) that the authors call the Empathy Game. The Empathy Game eliminates positive material reciprocity as a motivator that can support trust, leaving empathy as the primary possible remaining support. The authors find empathy can support trust. For example, for a Second Mover to be willing to help a First Mover in the authors’ Fixed Cost treatment, the empathy of the Second Mover for the First Mover must outweigh a material cost equal to 13% of Second Mover wealth. Despite this material disincentive, 37 of 60 First Movers (62%) chose to appeal to the empathy of the Second Mover by putting some wealth at risk. In response, Second Movers made the materially costly trustworthy choice in 17 of the 37 cases (or 46% of the time).