Intergroup trust and reciprocity in strategic interactions: Effects of group decision-making mechanisms

Abstract

I examined the impact of the consensus-making mechanism, where members reach a common decision via an intra-group discussion, on intergroup trust and reciprocity in a strategic setting. Data from a trust game generated the following results. First, compared to individual decision-makers, consensus groups exhibited (a) lower psychological trust, (b) higher behavioral trust, after controlling for psychological trust, and (c) lower reciprocity. Second, compared to decisions made by group-representatives, who are responsible for unilateral decisions on behalf of their groups, group consensus decisions were more trusting but less reciprocating. Thus, the specific decision-making mechanism adopted by groups in a strategic interaction may profoundly change the nature and the interplay of the interaction. Lastly, results show that the level of behavioral trust is driven by reciprocity expectations, while the level of reciprocity behavior, measured as a proportion of the trust received, does not change systematically with the level of trust experienced.