Trust and Strength of Family Ties: New Experimental Evidence

Abstract

We provide a conceptual replication of an experimental study that uncovered a robust correlation between the strength of individuals’ family ties and their distrust of strangers, striving to establish whether the link is causal. Using a different subjects pool and an online setting, we repeat the binary trust-game experiment from Ermisch and Gambetta and enrich it by manipulating the payoffs to create a low-trust and high-trust environment. The key finding is corroborated, but as expected, only in the high-trust environment. The two environments further allow us to impose a diff-and-diff design on the data, which rules out selection of low-trusting individuals into strong-tied families and gives us indirect evidence of causation, namely, that having strong family ties stunts the development of trust in strangers. Our findings support the emancipatory theory of trust proposed by Toshio Yamagishi and could be interpreted as uncovering the micro foundations of classic ethnographic studies, such as that by Edward Banfield, which described how subcultures fostering tight bonds within families or small groups make cooperation harder to be achieved.