Submission 54
Manipulation and Security of Communication in a Trust Game
panel.3-224 - Floor 1-02
Presented by: Dmitri Bershadskyy
Trust is a key element of economic and social interactions. Prior research suggests that effective communication fosters trust between parties. However, in the real world, communication is not always direct but can be subject to possible interception and manipulation. Thus, malevolent actors can exploit others for their own benefit by impersonating the original sender. In our preregistered laboratory experiment, we adapt the canonical Trust Game to investigate the effect of a malevolent third party that can intercept and manipulate the message from trustee to trustor and provide a costly option to secure communication. In our analysis, we investigate the behavior of trustees (including securing communication, written messages, and return rates), trustors (money transferred), and the manipulator (the decision to manipulate and the content of the manipulated message). The results largely contradict the subgame perfect Nash Equilibrium behavior. Additionally, we elicit and investigate different decision-relevant beliefs of all three parties.