Betrayal Aversion: Evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States
TLDR
For example, this paper found that people take risks less willingly when the agent of uncertainty is another person rather than nature, and that people's willingness to accept the risky rather than the sure payoff indicates betrayal aversion.Abstract:
Due to betrayal aversion, people take risks less willingly when the agent of uncertainty is another person rather than nature. Individuals in six countries (Brazil, China, Oman, Switzerland, Turkey, and the United States) confronted a binary-choice trust game or a risky decision offering the same payoffs and probabilities. Risk acceptance was calibrated by asking individuals their "min - imum acceptable probability" (MAP) for securing the high payoff that would make them willing to accept the risky rather than the sure payoff. People's MAPs are generally higher when another person, rather than nature, deter - mines the outcome. This indicates betrayal aversion. (JEL C72, D81, Z13)read more
Figures
Table A.2—MAPs in Three Decision Situations 
Table 2—Determinants of Minimum Acceptable Probabilities (MAPs) 
Table 1—Preference Phenomena: Betrayal Aversion, Social Preferences and Risk Aversion 
Figure 1. Experimental Games (Payoff to Principal, Payoff to Agent) 
Table A.4—Determinants of Minimum Acceptable Probabilities (MAPs) in Each Country 
Table A.3—Bootstrap Results for the Three Preference Phenomena:
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References
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