Some years ago, three economists led by Joyce Berg of the University of Iowa devised a clever game to test trust and trustworthiness. Variations of the so-called Trust Game have been used in hundreds of experiments since.

Here's how it works. When you show up to the lab, you're assigned one of two roles: the Investor (also called the Trustor) or the Trustee.  Either way, you get $10 just for showing up-but you have an opportunity to increase your earnings with help from the other player.  Unfortunately, you and the other player can't talk to each other. In fact, in the original experiment you're in separate rooms and remain
anonymous throughout the game.

Read the full article [here].

The article at the link above provides a detailed look at cooperative and competitive behaviors, as well as the delicate nature of trust, in the financial world.  The Trust Game described by the authors parallels the famous prisoner's dilemma, concluding that the risk of being scammed or cheated promotes trust and cooperation.

The authors also highlight the challenges and dynamics of the Sinister Attribution Error-a common attribution regardless of discipline or relationship.