Intentions and Consequences An Experimental Investigation of Trust and Reciprocity Determinants Volume 6 Jena Economic Research Papers 2012-06-21 2012 2007 2012-029 trust and reciprocity other-regarding preferences experiment We experimentally manipulate the efficiency of trust and reciprocity in a modified Investment Game. The aim of our manipulation is to test whether reciprocity is mainly affected by payoff consequences of trust or by intentions underlying it. We find that intentions matter and that consequences have an asymmetric impact: trustees reward trust more when trust is more efficient but do not adjust rewards to the efficiency of their own actions. As a result, profitability of trust is fostered by efficiency of trust as well as by efficiency of reciprocity. However, trustors do not fully exploit the high efficiency gains offered by investments and display only moderate trust. jportal_jpjournal_00000016 2012-06-20T12:41:56.465Z 2012-06-20T12:41:25.878Z