Advertisement

The Economic Approach to Cooperation and Trust

Lessons for the Study of Social Capital and Health
  • Lisa R. Anderson
  • Jennifer M. Mellor

Abstract

A rapidly growing empirical literature from across the social sciences relates social capital to a diverse array of indicators of well-being, including economic growth (Knack & Keefer, 1997), labor force participation (Aguilera, 2002), violent crime (Galea, Karpati, & Kennedy, 2002), political corruption (La Porta et al., 1997), and even self-reported happiness (Bjornskov, 2003). Of all the phenomena thought to be affected by social capital, health and health-related outcomes have received the greatest attention, evidenced in part by the contributions in this volume. Yet, despite repeated findings of a statistical association between social capital and various health outcomes and risk factors, as well as the existence of plausible causal pathways linking social capital to individual health,3 many health economists are skeptical of the importance of social capital for health (e.g., Mellor & Milyo, 2005).

Keywords

Social Capital Nash Equilibrium Generalize Trust Public Good Game Trust Game 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aguilera, M. B. (2002). The impact of social capital on labor force participation: Evidence from the 2000 Social Capital Benchmark Survey. Social Science Quarterly, 83(3), 853–874.CrossRefGoogle Scholar
  2. Ahern, M. M., & Hendryx, M. S. (2003). Social capital and trust in providers. Social Science and Medicine, 57(1), 1195–1204.PubMedGoogle Scholar
  3. Alesina, A., & La Ferrara, E. (2000). Participation in hetergeneous communities. Quarterly Journal of Economics, 115(3), 847–904.CrossRefGoogle Scholar
  4. Alesina, A., & La Ferrara, E. (2002). Who trusts others? Journal of Public Economics, 85(2), 207–234.CrossRefGoogle Scholar
  5. Anderson, L. R. (2001). Public choice as an experimental science. In W. Shughart & L. Razzolini (Ed.), The Elgar companion to public choice. Northampton, MA: Edward Elgar Publishing.Google Scholar
  6. Anderson, L. R., Mellor J. M., & Milyo J. (2004). Social capital and contributions in a public goods experiment. American Economics Review Papers and Proceedings, 94(2), 373–376.Google Scholar
  7. Anderson, L. R., Mellor J. M., & Milyo, J. (2005). Do liberals play nice? The effects of political party and ideology in public goods and trust games. In J. Morgan (Ed.), Advances in applied microeconomics: Experimental and behavioral economics. Stam-ford, Connecticut: JAI Press.Google Scholar
  8. Anderson, L. R., & Mellor J. M. (2006). Did the Devil make them do it? The effects of reli-gion in public goods and trust games. Working Paper Number 20, Department of Economics, The College of William and Mary.Google Scholar
  9. Anderson, L. R., Mellor J. M., & Milyo, J. (forthcoming). Inequality, group cohesion and public goods provision: An experimental analysis. The Journal of Socio-Economics.Google Scholar
  10. Anderson, L. R., Mellor J. M., & Milyo, J. (2006). Induced heterogeneity in trust experi-ments. Experimental Economics, 9(3), 223–235.CrossRefGoogle Scholar
  11. Andreoni, J. (1988). Why free ride? Strategies and learning in public goods experiments. Journal of Public Economics, 37, 291–304.CrossRefGoogle Scholar
  12. Ashraf, N., Bohnet, I., & Piankov, N. (2006). Decomposing trust and trustworthness. Experimental Economics, 9(3), 193–208.CrossRefGoogle Scholar
  13. Axelrod, R. (1984). The evolution of cooperation. New York, NY: Basic Books.Google Scholar
  14. Barr, A. (1999). Familiarity and trust: An experimental investigation. The Center for the Study of African Economies Working Paper Series, Paper 107.Google Scholar
  15. Barr, A. (2003). Trust and expected trustworthiness: Experimental evidence from Zimbab-wean villages. The Economic Journal, 113, 614–630.CrossRefGoogle Scholar
  16. Beiseitov, E., Kubik, J. D., & Moran, J. R. (2003). Informal informational sharing and the demand for health insurance among elderly. Robert Wood Johnson Scholars Working Paper WP-24, Boston University (Boston, MA).Google Scholar
  17. Bellemare, C.,, & Kroger, S. (2003). On representative trust. Tilberg University, CentER Discussion Working Paper No. 2003–47.Google Scholar
  18. Berg, J., Dickhaut J., & McCabe, K. (1995). Trust, reciprocity, and social history. Games and Economic Behavior, 10, 122–142.CrossRefGoogle Scholar
  19. Bjornskov, C. (2003). The happy few: Cross-country evidence on social capital and life satisfaction. Kyklos, 59(1), 3–16.CrossRefGoogle Scholar
  20. Bouckaert, J., & Dhaene, G. (2004). Inter-ethnic trust and reciprocity: Results of an exper-iment with small business entrepreneurs. European Journal of Political Economy, 20(4), 869—886.CrossRefGoogle Scholar
  21. Branas-Garza, P., & Morales, A. (2003). Gender differences in prisoners’ dilemma. manu-script, Centro de Estudios Andaluces (Seville, Spain).Google Scholar
  22. Brock, W., & Durlauf, S. (2001). Interactions-based models. In Heckman & Leamer (Eds.), Handbook of econometrics, (Elsevier Science B.V.)Google Scholar
  23. Brown-Kruse, J., & Hummels, D. (1993). Gender effects in laboratory public goods contri-butions: Do individuals put their money where their mouth is? Journal of Economic Behavior and Organization, 22, 355–267.CrossRefGoogle Scholar
  24. Buchan, N., & Croson, R. (2004). The boundaries of trust: Own and other’s actions in the US and China. Journal of Economic Behavior and Organization, 55(4), 485–504.CrossRefGoogle Scholar
  25. Burks, S. V., Carpenter, J. P., & Verhoogan, E. (2003). Playing both roles in the trust game. Journal of Economic Behavior and Organization, 51(2), 195–216.CrossRefGoogle Scholar
  26. Burlando, R., & Hey, J. D. (1997). Do Anglo-Saxons free-ride more? Journal of Public Economics, 64, 41–60.CrossRefGoogle Scholar
  27. Cason, T., Saijo, T., & Yamato, T. (2002). Voluntary participation and spite in public good provision experiments: An international comparison. Experimental Economics, 5, 133–153.CrossRefGoogle Scholar
  28. Carman, K. G. (2004). Social influences and the private provision of public goods: Evidence from charitable contributions in the workplace, manuscript. Cambridge, MA: Harvard University).Google Scholar
  29. Cohen, S., Doyle, W., Skoner, D., Rabin, B., & Gwaltney, J. (1997). Social ties and suscep-tibility to the common cold. JAMA, 227(24), 1940–1944.CrossRefGoogle Scholar
  30. Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95–S120.CrossRefGoogle Scholar
  31. Cooley, J. (2005). Desegregation and the acheivement gap; Do diverse peers help? manu-script. Durham, NC: Duke University.Google Scholar
  32. Costa, D. L., & Kahn, M. E. (2003a). Understandingthe decline in American social capi-tal. Kyklos, 56(1), 17–46.CrossRefGoogle Scholar
  33. Costa, D. L., & Kahn, M. E. (2003b). Civicengagement and community heterogeneity: An economists perspective. Perspectives on Politics, 1(1), 103–112.CrossRefGoogle Scholar
  34. Costa, D. L., & Kahn, M. E. (2003c). Cowardsand heroes: Group loyalty in the American civil war,” Quarterly Journal of Economics, 118(2), 519–548.CrossRefGoogle Scholar
  35. Croson, R., & Buchan, N. (1999). Gender and culture: International experimental evi-dence from trust games. American Economic Review Papers and Proceedings, 89(2), 386–391.Google Scholar
  36. Csukas, C., Fracalanza, P., Kovacs, T., & Willinger, M. (2003). Stated trust versus trusting behavior in an intercultural experiment. Working Paper 2003–25, Technical University of Budapest, Department of Finance and Accounting.Google Scholar
  37. Danielson, A. J., & Holm, H. (2004). Do you trust your brethren? Eliciting attitudes and trust behavior in a Tanzanian congregation. Working Paper 2004:2. Economics Depart-ment, University of Lund.Google Scholar
  38. Deri, C. (2005). Social networks and health service utilization. Journal of Health Econom-ics, 24, 1076–1107.CrossRefGoogle Scholar
  39. Durlauf, S. (1999). The case against social capital. Focus, 20, 1–5.Google Scholar
  40. Durlauf, S. (2001). A Framework for the study of individual behavior and social interac-tions. University of Wisconsin Working Paper.Google Scholar
  41. Durlauf, S. (2002). On the empirics of social capital. Economic Journal, 112(483), 459–479.CrossRefGoogle Scholar
  42. Fehr, E., Fischbacher, U., von Rosenbladt, B., Schupp, J., & Wagner, G. G. (2003). A Nation-wide laboratory: Examining trust and trustworthiness by integrating behav-ioral experiments into representative surveys. IZA Discussion Paper No. 715.Google Scholar
  43. Fershtman, C., & Gneezy, U. (2001). Discrimination in a segmented society: An experi-mental approach. Quarterly Journal of Economics, 116(1), 351–377.CrossRefGoogle Scholar
  44. Flood, M. (1952). Some experimental games. Research Memorandum RM-789, RAND Corporation.Google Scholar
  45. Fratiglioni, L., Wang, H.X., Ericsson, K., Maytan, M., & Winblad, B. (2000). Influence of social network on occurence of dementia: a community-based longitudinal study. Lancet, 355, 1315–1319.CrossRefPubMedGoogle Scholar
  46. Gächter, S., Herrmann, B., & Thöni, C. (2003). Trust, voluntary cooperation, and socio-economic background: Survey and experimental evidence. Journal of Economic Behavior and Organization, 55(4), 505–531.CrossRefGoogle Scholar
  47. Galea, S., Karpati, A., & Kennedy, B. (2002). Social capital and violence in the United States, 1974–1993. Social Science and Medicine, 55, 1373–1383.CrossRefPubMedGoogle Scholar
  48. Glaeser, E. L., Laibson, D. I., Scheinkman, J. A., & Soutter, C. L. (2000). Measuring trust. Quarterly Journal of Economics, 115(3), 811–846.CrossRefGoogle Scholar
  49. Goeree, J., Holt, C., & Laury, S. (2002). Private costs and public benefits: Unraveling the effects of altruism and noisy behavior. Journal of Public Economics, 83(2), 257–278.CrossRefGoogle Scholar
  50. Gold, R., Kennedy, B. P., Connell, F., & Kawachi, I. (2002). Teen births, income inequal-ity and social capital: developing an understanding of the causal pathway. Health and Place, 8, 77–83.CrossRefPubMedGoogle Scholar
  51. Guiso, L., Sapienza, P., & Zingales, L. (2004). The role of social capital in financial devel-opment. American Economic Review, 94(3), 526–556.CrossRefGoogle Scholar
  52. Hawe, P., & Shiell, A. (2000). Social capital and health promotion: A review. Social Sci-ence and Medicine, 51, 871–875.CrossRefGoogle Scholar
  53. Hemenway, D., Kennedy, B. P., Kawachi, I., & Putnam, R. (2001). Firearm prevalence and social capital. Annals of Epidemiology, 11(7): 484–490.CrossRefPubMedGoogle Scholar
  54. Hendryx, M. S., Ahern, M. M., Lovrich, N. P., & McCurdy, A. H. (2002). Access to health care and community social capital. Health Services Research, 37(1), 87–103.PubMedGoogle Scholar
  55. Henrich, J., Boyd, R., Boyd, S., Camerer, C., Fehr, E., Gintis, H. et al. (2001). In search of homo economicus: Behavioral experiments in 15 small-scale societies. American Eco-nomic Review, 91, (2), 73–78.CrossRefGoogle Scholar
  56. Holtgrave, D. R., & Crosby, R. A. (2003). Social capital, poverty, and income inequality as predictors of gonorrhoea, syphilis, chlamydia and AIDS case rates in the United States. Sexually Transmitted Infections, 79(1), 62–65.CrossRefPubMedGoogle Scholar
  57. Isaac, R. M., & Walker, J. M. (1988). Communication and free riding behavior: The volun-tary contribution mechanism. Economic Inquiry, 26, 585–608.CrossRefGoogle Scholar
  58. Isaac, R. M., Walker, J. M., & Thomas, S. (1984). Divergent evidence on free riding: An experimental examination of some possible explanations. Public Choice, 43(2), 113–149.CrossRefGoogle Scholar
  59. Kaplan, G. A., Salonen, J. T., Cohen, R. D., Brad, R.J., Syme, S.L., & Puska, P. (1988). Social connections and mortality from all causes and from cardiovascular disease: Prospective evidence from Eastern Finland. American Journal of Epidemiology, 128, 370–380.PubMedGoogle Scholar
  60. Kawachi, I., Kennedy, B. P., Lochner, K., & Prothrow-Stith, D. (1997). Social capital, income inequality and mortality. American Journal of Public Health, 87, 1491–1498.CrossRefPubMedGoogle Scholar
  61. Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics, 112(4), 1251–1288.CrossRefGoogle Scholar
  62. Koford, K. (2001). Trust and reciprocity in Bulgaria: A replication of Berg, Dickhaut and McCabe. Working paper, University of Delaware.Google Scholar
  63. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1997). Trust in large organ-izations. American Economic Review Papers and Proceedings, 87(2), 333–338.Google Scholar
  64. Laury, S. K., Walker, J. M., & Williams, A. W. (1995). Anonymity and the voluntary pro-vision of public goods. Journal of Economic Behavior and Organization, 27, 365–380.CrossRefGoogle Scholar
  65. Ledyard, J. O. (1995). Public goods: A survey of experimental research. In J. Kagel & A. Roth (Eds.), The handbook of experimental economics. Princeton, NJ: Princeton University Press.Google Scholar
  66. Lindstrom, M., Hanson, B., & Ostergren, P.-O. (2001). Socioeconomic differences in leisure-time physical activity: The role of social participation and social capital in shap-ing health related behaviors. Social Science and Medicine, 52(3), 441–451.CrossRefPubMedGoogle Scholar
  67. Lo Sciuto, L, Rajala, A., Townsend, T. N., & Taylor, A. S. (1996). An outcome evaluation of across ages: An intergenerational mentoring program to drug prevention. Journal of Adolescent Research, 11, 116–129.CrossRefGoogle Scholar
  68. Loury, G. C. (1977). A dynamic theory of racial income differences. In P. Wallace & A. M. La Monde (Eds.), Women, minorities and employment discrimination. Heath (Lexing-ton, MA).Google Scholar
  69. Luttmer, E. F.P. (2001). Group loyalty and the taste for redistribution. Journal of Political Economy, 109(3), 500–528.CrossRefGoogle Scholar
  70. Manski, C. (1993). Identification of endogenous social effects: The reflection problem. Review of Economic Studies, 60(3), 531–542.CrossRefGoogle Scholar
  71. Manski, C. (1995). Identification problems in the social sciences. Cambridge, Massachu-setts: Harvard University Press.Google Scholar
  72. Manski, C. (2000). Economic analysis of social interactions. Journal of Economic Per-spectives, 14, 115–136.Google Scholar
  73. Marwell, G., & Ames, R. (1981). Economists free ride: Does anyone else? Experiments on the provision of public goods IV. Journal of Public Economics, 15, 295–310.CrossRefGoogle Scholar
  74. Mellor, J. M., & Milyo, J. (2005). State social capital and individual health status. Journal of Health Politics, Policy and Law, 30(6), 1101–1130.CrossRefPubMedGoogle Scholar
  75. Moffit, R. (2000). Policy interventions, low-level equilibria and social interactions. Johns Hopkins Working Paper.Google Scholar
  76. Ostrom, E., & Walker, J. (2003). Trust and reciprocity: Interdisciplinary lessons from experimental research. New York: Russell Sage Foundation.Google Scholar
  77. Palfrey, T. R., & Prisbrey, J. R. (1997). Anomalous behavior in public goods experiments: How much and why? American Economic Review, 87, 829–846.Google Scholar
  78. Putnam, R. D. (2000). Bowling alone: The collapse and revival of American community. New York: Simon and Schuster.Google Scholar
  79. Saluja, G., Kotch, J., & Lee, L. (2003). Does social capital really matter? Archives of Pedi-atric and Adolescent Medicine, 157, 681–686.CrossRefGoogle Scholar
  80. Silvia, E. S., Thorne, J., & Tashjian, C. A. (1997). School-based drug prevention programs: A longitudinal study in selected school districts. Research Triangle Part, NC: Research Triangle Institute and U.S. Department of Education.Google Scholar
  81. Sobel, J. (2002). Can we trust social capital? Journal of Economic Literature, 40, 139–154.CrossRefGoogle Scholar
  82. Subramanian, S. V., Kim, D. J., & Kawachi, I. (2002). Social trust and self-rated health in U.S. communities: A multilevel analysis. Journal of Urban Health, 79(4), S21–S34.PubMedGoogle Scholar
  83. Subramanian, S. V., Lochner, K. A., & Kawachi, I. (2003). Neighborhood differences in social capital: A compositional artifact or a contextual construct? Health & Place, 8, 33–44.CrossRefGoogle Scholar
  84. Vigdor, J. (2002). Interpreting ethnic fragmentation effects. Economic Letters, 75(2), 271–276.CrossRefGoogle Scholar
  85. Vigdor, J. (2004). Community composition and collective action: Analyzing initial mail response to the 2000 census. Review of Economics and Statistics, 86(1), 303–312.CrossRefGoogle Scholar
  86. Weitzman, E. R., & Kawachi, I. (2000). Giving means receiving: The protective effect of social capital on binge drinking on college campuses. American Journal of Public Health, 90(12), 1936.CrossRefPubMedGoogle Scholar
  87. Wilkinson, R. G. (1996). Unhealthy societies: The afflictions of inequality. New York: Routledge.Google Scholar
  88. Willinger, M., Keser, C., Lohmann, C., & Usunier, J.-C. (2003). A comparison of trust and reciprocity between France and Germany: Experimental investigation based on the investment game. Journal of Economic Psychology, 24, 447–466.CrossRefGoogle Scholar

Copyright information

© Springer Science + Business Media, LLC 2008

Authors and Affiliations

  • Lisa R. Anderson
    • 1
  • Jennifer M. Mellor
    • 1
  1. 1.College of William and MaryWilliamsburgUSA

Personalised recommendations