Review paper
Theft, Gift-Giving, and Trustworthiness: Honesty is its Own Reward in Rural Paraguay
Abstract
Rural areas of developing countries often lack effective legal enforcement. However, villagers who know each other well and interact repeatedly may use implicit contracts to minimize crime. I construct a dynamic limited-commitment model in which a thief cannot credibly commit to forego stealing from his fellow villagers but may be induced to limit his stealing by the promise of future gifts from his potential victim. Using a unique survey from...
Paper Details
Title
Theft, Gift-Giving, and Trustworthiness: Honesty is its Own Reward in Rural Paraguay
Published Date
Jan 1, 2006
Journal
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Notes
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